Production refers to the creation of goods or services by converting resources. For entrepreneurs, it is important to consider whether to focus on producing physical goods through manufacturing or creating services. Producing services is very challenging as it tests an entrepreneur's innovative and creative abilities. When deciding what to produce, entrepreneurs must consider what products or services will meet market needs even before creating a business plan. The type of production, whether goods or services, impacts the funding, equipment, and infrastructure required by the business.

2. THE CONCEPT OF
PRODUCTION
Production in contemporary times
really refers to creation of products or
services and conversion of
transformation of resources into a
finished physical product (goods) or
services needed by the market or
consumers.

3. For entrepreneur, mind-setting is
important in going into a self-
owned business. This mind-setting
stage means that, among others,
one has to realize weather the
entrepreneur has to take the route
via hardware production as in the
context of what technical
production/manufacturing where
output is physical products or
goods.

4. The entrepreneur may
have to take the route
via creation services.

5. Production or
creating services is a
very challenging
option for
entrepreneur as this
is where an innovative
and creative mind is
really tested to be
limits.

7. WHAT PRODUCT TO
PRODUCE
For market-
oriented
entrepreneur, the
question of what to
produce or
manufacture boils
down to the question
of what to sell.

8. What product to produce of
what service to render to
meet the needs of the market
is by itself the bias of the
entrepreneur? Even before
ascertaining in writing or
doing the business plan (if
needed this has to be done)

9. A prospective
entrepreneur
really has in
mind the kind
of product or
service to be
handled.

11. This option is a bit
expensive route for the
entrepreneur simply
because the need to budget
funds for the procurement
of capital items and other
infrastructure need for a
production or
manufacturing-based
business concern.

12. Each production
processes demands a
detailed study both from
technical, economic and
financial aspects as well.

13. In the business plan,
specific study and analysis
of every minor detailed of
the production processes
have to be carefully made as
this is where cost
minimization aspects can be
addressed.

14. By using the appropriate
production technology, the
entrepreneur should be able
to hire the appropriate
personnel well qualified and
motivated to operate the
machines and deliver the
right quality of product.

15. Source of skill Production
0Books
0Literatures
0Documents of producing
or manufacture

16. Equipment’s and
machinery suppliers
for any production
generally provide
manuals.

17. `
NEW PRODUCT
COMPANY
EQUIPMENTS
MACHINERY
MONEYRAW MATERIALS
MANPOWER
WORKING IN
PROGRESS …
LAND

19. The entrepreneur
avoids the cost of
burden of buying
machineries and
equipment as this is
the concern of sub-
contractor.

20. All materials and
supplies are provided
for by the main
producer/exporter to
ensure product
quality.

21. Sub-contractors are
subject to strict quality
control measures with
subcontractors threatened
with penalties and
sanctions when turning in
underquality finished
products.

22. DELIVERY
COMPANY
NEW PRODUCT
CONTRACTOR
RAW MATERIALS