entrepreneur speak

[cong]

lets put what we studied to work, shall we? lets talk about our business, if we started any. or our current profession or career. share your sound business plans. share your marketing strategy. share your management techniques. anything. lets talk money. whats that one word we love? PROFIT. talk to me people.

ateneans, show me what you learned and/or applying out in the business world.

[mufdiver_69_III]

Ateneans lang ba ang pwede sumagot? Paano naman kaming mga taga-FEATI?

[Saikee]

Originally posted by mufdiver_69_III
Ateneans lang ba ang pwede sumagot? Paano naman kaming mga taga-FEATI?

hehe :)

Lets say I'd like to come up with an innovative product
1 - decide on industry
2 - brainstorm on finding the exactly product that we'd like to produce
3 - when we have shortlisted our options, we do a feasibility study
4 - if it passes the test, we produce a prototype
5 - we'd make modifications/perfect the prototype and finally decide to roll out the final product

of course i left out other important aspects like the financials of the product, the sourcing of materials, production workflow, etc. but basically that's what's we're doing.

[cong]

Originally posted by mufdiver_69_III
Ateneans lang ba ang pwede sumagot? Paano naman kaming mga taga-FEATI?

no, sorry. didnt mean it that way. everyones welcome.

[cong]

Originally posted by Saikee

Lets say I'd like to come up with an innovative product
1 - decide on industry
2 - brainstorm on finding the exactly product that we'd like to produce
3 - when we have shortlisted our options, we do a feasibility study
4 - if it passes the test, we produce a prototype
5 - we'd make modifications/perfect the prototype and finally decide to roll out the final product

of course i left out other important aspects like the financials of the product, the sourcing of materials, production workflow, etc. but basically that's what's we're doing.

dont get me wrong, theyre good, but theyre so textbook. know what i mean?

if you dont mind, what do you do? thats okay, im not here to judge you ;). i just want to talk business for a change.

i liked reading the financials part, because my dads a banker, and just last month, we were discussing about financials while having dinner (hindi ako suwail na anak, i still see my parents from time to time ;) ). production workflow, galing.

[Saikee]

Originally posted by cong


dont get me wrong, theyre good, but theyre so textbook. know what i mean?

if you dont mind, what do you do? thats okay, im not here to judge you ;). i just want to talk business for a change.

i liked reading the financials part, because my dads a banker, and just last month, we were discussing about financials while having dinner (hindi ako suwail na anak, i still see my parents from time to time ;) ). production workflow, galing.

:glee: hehehe no problem about it man. this is all fun. btw, regarding my other posts in other forums, hope i didn't irk u too much. ;) its all in the spirit of fun n sharing . hehe :)

anyways, i can't really say exactly what product we're making. we still have to finalize the patents for it. all i can say is that its such a "eureka" idea, and its SOOOO easy to copy. so easy in fact that after brainstorming and coming up with that idea, i was so unconvinced that they still didn't have it in the market (specifically the US market cuz we plan to export this thing). well, after research, we found out that no one had thought of the idea yet. so here we are, getting patents from the US and Europe.

we haven't discussed the financials specifically yet. its my colleague's line of work. im more into research, production n maybe marketing (we're a really small team.. no overhead cost! hehehe :)) but hell, money will talk soon, and we've gotta make the big investment, all of us, and hope the money comes back five, ten, or a hundred or thousand-fold :)

[cong]

offtopic: saikee: hey dont worry about it. its all for fun.

on-topic:

as my mentor say, "Success is a function of superb execution of the basic fundamentals."

when time to discuss financials, the more involved you are the better. its important to know all aspects of your business. the more your knowledge increases, the more marketable you become. know that the success of your business springs from you and your partners willingless to embrace accountability.

things to consider regarding financials.

costs of goods 24%
labor 25%
debt service 6%
sales and marketing 8%
general and administrative 17%

adds up to 80%. the remaining 20% is the sweetest word- profit. remember that these are averages, meaning, the best of the worst and the worst of the best.

im no accounting major, accounting people help out.

what is a current and quick ratio? what do they measure?

let me talk dollars as it is easier for me to analyze. peso works too. this is how i understand it, current ratio measures solvency. the amount in current assets for every $1 in current liabilities.

formula: current assets divided current liabilities =current ratio.

a current of $2.10 means that for every $1 of current liabilities, the business has $2.10 in current assets to pay for them. (whew!)

quick ratio means liquidity. the amount of dollars in cash and accounts receivable for every dollar in current liabilities.

formula: cash and a/r divided by current liabilities =quick ratio

a quick ratio of $1.82 means that for every $1 of current liabilities, the business has $2.10 in cash and account receivables to pay for them.

[Saikee]

Originally posted by cong
offtopic: saikee: hey dont worry about it. its all for fun.

on-topic:

as my mentor say, "Success is a function of superb execution of the basic fundamentals."

when time to discuss financials, the more involved you are the better. its important to know all aspects of your business. the more your knowledge increases, the more marketable you become. know that the success of your business springs from you and your partners willingless to embrace accountability.

things to consider regarding financials.

costs of goods 24%
labor 25%
debt service 6%
sales and marketing 8%
general and administrative 17%

adds up to 80%. the remaining 20% is the sweetest word- profit. remember that these are averages, meaning, the best of the worst and the worst of the best.

im no accounting major, accounting people help out.

what is a current and quick ratio? what do they measure?

let me talk dollars as it is easier for me to analyze. peso works too. this is how i understand it, current ratio measures solvency. the amount in current assets for every $1 in current liabilities.

formula: current assets divided current liabilities =current ratio.

a current of $2.10 means that for every $1 of current liabilities, the business has $2.10 in current assets to pay for them. (whew!)

quick ratio means liquidity. the amount of dollars in cash and accounts receivable for every dollar in current liabilities.

formula: cash and a/r divided by current liabilities =quick ratio

a quick ratio of $1.82 means that for every $1 of current liabilities, the business has $2.10 in cash and account receivables to pay for them.

awww man! too much information! i don't want to think! hehehe :) im no accounting major either, and i don't want to involve myself in those things. hey i just put up a production workflow, get a few partnerships and maybe get a little marketing done, and thats my work (at least my "sideline") kind of work

[Hannibal]

Hi Cong,

Thanks for the invitation to this thread. I just read your invitation in a different thread. I very rarely visit PEx, so pardon me if I'm not timely in my response(s).

Anyway, as I mentioned in a different thread, I graduated from Ateneo many, many years ago. I studied BS Mgt Engineering in Ateneo and did my postgraduate in Oxford. I now live in California. I am an investment banker and I am primarily involved in venture capital and mergers & acquisition. Lately, because of the slowdown in the equity markets, I was given the added responsibility of covering technology finance on the East Coast. As a result, I find myself constantly traveling to cities like Boston, New York, Atlanta, and Montreal.

As far as money is concerned, I consider my job more as a safety net. It pays for my mortgage and a few bills although most people would consider my pay as quite high. My real upside comes from investments. I have dabbled in real estate investments in Southern California and the Bay Area but I found this activity to be too time-consuming and too conservative. It takes a long time to make money and I have a short attention span. Furthermore, I find real estate to be too illiquid. It takes too much time to buy and liquidate.

My real passion is the equity markets. I am referring not only to the primary market (eg IPOs, which is practically dead right now), but also to the secondary markets and equity derivatives. The latter is my real "love." I currently make more money by trading options. This is partly due to the high volatility of the stock prices in the current market. The higher the volatility, the higher the option premium. It is not an easy task to invest in equity derivatives, however, since it takes a lot of studying in order to truly understand how these instruments work. One has to be mathematically inclined (i.e., strong in probability theory and statistics) in order to understand options pricing model. Furthermore, one has to have a strong foundation in fundamental analysis for a solid understanding of the underlying stocks of the companies and their options. But for those with the right aptitude and the patience, I strongly recommend equity derivatives as a means of accelerating your retirement goals.

On the venture capital front, I do see anywhere from 15-25 business plans a month. Most of these are high tech startup companies. The key qualities I look for are: (1) experienced management; (2) strong barriers to entry (ideally, there should be patents or some form of IP); (3) huge potential market being addressed by the product or service; (4) some traction (i.e., historical revenue) and aggressive revenue ramp-up; and (5) clear path-to-profitability (i.e., profitable within 18-24 months, not beyond). My firm looks at deals ranging anywhere from $15 million to over $100 million.

Anyway, these are just for starters. I am sure I am older than most of you. Just be patient and follow your dreams. Don't lose hope. No pain, no gain. No risk, no profit. Keep trying. The path to material wealth is much easier than the path to true happiness. Trust me.

Good luck!

Regards,
Hannibal :wink:

[Krakista]

Nice thread cong!

I don't believe in spending much time in "rituals." I simply go ready, fire, aim. Especially in the tech field, things really move very fast.