Arranging Finance
Without Finance your dream to set up an enterprise remains only a dream. For arranging finance you must first chalk out the exact amount of finance that will be required to set up your business. The first thing you must explore is to find out whether you can pool the resources from yourself to set up your enterprise. If the capital requirement is more than what you can meet you will have to search for other options like getting loan from Banks, Other finance schemes, or various subsidy based loan schemes of Government. Prepare a Project Report to access your capital requirement. It has been observed that while opting for finance people either take insufficient loan and then search for alternative options or take loan beyond their need and end up wasting the resources. Remember you are taking loan to repay it. So be very conservative and realistic.
In other chapters we will discuss in detail various Project Finance Schemes & Project Report Writing.
Arranging Man, Machine, Material etc
According to the nature & span of your business you must acquire the required manpower, machine & raw material. Be realistic in your approach while arranging for the 3Ms. Assess the need and requirement and then opt for it. Scout market, search internet for best suppliers and do good purchases.
Obtaining Statutory Licences etc
Depending upon the nature of your business you will require to obtain Statutory licences. Supposing your enterprise is into food industries the approval of Food & Drug Administration will be required. If you are into manufacturing industry the Clearance for State Pollution Control Board will be essential. Apart from these you will also require to cover your employees and workers under Employees State Insurance Scheme (ESIC) & other mandatory schemes. Do remember that in each state Government has notified areas into categories like A, B, C, D etc. Incentives and restrictions are levied depending upon the zone in which your company operates. If for example, your company is in D zone you will get tax incentives. Some areas are no industry zone. Do contact your nearest Industry Office and consult them before setting up your unit.
Production
Upon getting all the clearances, arranging all the finances, man machine material etc. Its time for real action. Beginning your production. The product that you bring out must be the best, for the first impression will always make the last one. A good product quality wise will always survive any kind of competition. Do check your products, check its quality, its packaging, its processes, do not hasten up things and take your good time before launching the product into the market. It is better to wait than to haste.
Marketing
This tool will only ensure that you survive, sustain and flourish in the market. The kind of marketing techniques you adopt will only determine the response that you get from the market. You cannot be good into all the fields. So entrust this crucial job of marketing to professionals. Study the marketing mix and try to place your product before the right segment. For example. If you are producing Incense Sticks (Agarbatti) and selling it for 10 rs. If your buyer segment consists of people from lower strata, they will prefer quantity and may compromise with quality. On the other hand if you sell same product in affluent areas the preference in general will be for Quality. Try to create a niche for yourself in the market. Marketing essentially depends upon four important Ps. Product, Pricing Promotion & Place. These four Ps determine whether you succeed or fail in the market.
Profit Generation
On implementing the above steps judiciously and carefully your firm should ideally start generating profit. Study the pattern of receiving profit, the channels, regions, marketing strategy, product from where you are getting more profit and the region where you are lacking. Concentrate on the weakpoints but do not ignore the strongholds also. Remember you have to keep on continuing generating profits.
Profit Generation
On implementing the above steps judiciously and carefully your firm should ideally start generating profit. Study the pattern of receiving profit, the channels, regions, marketing strategy, product from where you are getting more profit and the region where you are lacking. Concentrate on the weakpoints but do not ignore the strongholds also. Remember you have to keep on continuing generating profits.
Repayment of Liabilities
Do Remember that you are taking loans for repaying. Once you start accruing profits, Be advised to try and repay your liabilities first. For it will mean more profits. Be judicious however in distribution of accrued funds. All profits spent for repaying loans will affect your future capital requirement for production needs.
Business Expansion
By now you will be atleast two or three years into business. Mind you once you spend two three years into business. You will get transformed into a businessmen and you will always remain so all your life. Draw strategies to expand your business, expand your product range, diversify your business, spread to newer vistas and try to expand your business. Remember the old saying Stagnant water grows stinking.
Avoiding Sickness & Business Continuity
As normal humans, our businesses also grow sickness, industrial sickness, volatile industrial scenario, changing government policies, tax regimes, competitors policies, workers unrest, any of these factors or any other factor may result in total sickness or even closure of your business. So keep your ears to the ground, try to gauge changing winds and take necessary pre-emptive measures to avoid sickness. Prevention is always better than cure, it is wisely said.
Also do remember that you must ensure the Business Continuity. The days of Customer Loyalty are fast fading, consumers now have a choice, they do not cancel their shopping plans just because their regular shop is closed, they just skip the closed one and go to the other. Ensure that your company always works. Arrange resources keeping in mind the future trends.
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As normal humans, our businesses also grow sickness, industrial sickness, volatile industrial scenario, changing government policies, tax regimes, competitors policies, workers unrest, any of these factors or any other factor may result in total sickness or even closure of your business. So keep your ears to the ground, try to gauge changing winds and take necessary pre-emptive measures to avoid sickness. Prevention is always better than cure, it is wisely said.
Also do remember that you must ensure the Business Continuity. The days of Customer Loyalty are fast fading, consumers now have a choice, they do not cancel their shopping plans just because their regular shop is closed, they just skip the closed one and go to the other. Ensure that your company always works. Arrange resources keeping in mind the future trends.
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