Accidental Entrepreneur: Basic Project Planning with Finance in Mind for Dummies

  • First one is a few experienced people who have worked on many complex projects and been successful in taking the product to the market.
  • Second ones are the specialists who could be experienced or recent college graduates, but have specific areas of expertise which the company needs
  • Third one is recent or fresh graduates who are smart but can be molded to deliver high quality results.
  • Total cost for each resource is 20–25% higher than the basic salary due to medical insurance benefits, office location, IT expenses, Tools and other expenses. Keep some amount in the budget for these.
  • Be fair with compensation among team members.
  • No one in the company or project is irreplaceable.
  • Tools such as Slack and others to improve communications and collaborations among team members.
  • Feature, task and bug tracking applications such as Jira.
  • For hardware development, tools from CAD (Computer Aided Design) companies are a must for accuracy and to manage complexity.
  • Design houses and engineers to augment the internal resources for a short duration to develop the product. These are seasonal or only needed for specific phases of the development.
  • Planning with Production Scaling in Mind: Success of product development is ultimately winning customers and selling products at reasonable profit. Once the product is developed, it is difficult to go back and change much. By thinking about the product cost from the early stage of the project, it is easier to control the cost and make right decisions on the following items:
  • Choosing right components: This could apply to purchasing licenses to include in the product or hardware components. By considering the minimum and maximum opportunity size and minimum order quantity, the team can choose the right vendor.
  • Choosing the right manufacturing house: At the beginning the volume would be low and turnaround time needs to be short. Balancing between cost, minimum build quantity and lead time to build the products, one can select local versus remote manufacturing houses.
  • Choosing components with a second source: This hits hard when a product needs to be scaled suddenly. When possible, during the design phase, it is critical to analyze and incorporate components which can be second sourced.
  • Minimalisms: I like this quote that “The Best code is the code you don’t write” or “Best HW design component is the component never used in the design”. What these codes imply is that by minimizing the code and component, reliability of the design improves and cost of the product goes down.

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Ruban Kanapathippillai

Ruban Kanapathippillai

Entrepreneur, Founder of multiple successful startups, Mentor/coach, Angel investor (Sandhill Angels) and Positive thinker