Steps in starting up the small-scale business.
A potential entrepreneur has to pass through various stages for setting up small scale unit. These are as follows:-
The decision to be self-employed: - An educated person has to decide between two option either to work for other as employees or to work for himself as an entrepreneur. If the person possesses the right of knowledge, skill, experience and aptitude the best option for him is to set his own enterprise. This would give him best opportunity to invest, to innovate and to give the best shape of this ideas.
Identification of opportunity: - The viability of units means the business should identify the market needs. The entrepreneur has to do, but the consumer wants he has to produce according to needs and demands of the consumer.
Selection of product on the basis of the market survey: - An entrepreneur has to select the product on the basis of the market survey, An entrepreneur should select the product keeping in view his own capacity, knowledge, motivation. Access the existing demand of the product in domestic and export market.
Selecting the form of business ownership: - The form of business ownership can be a sole trader, partnership firm or private limited company etc. A sole trader possesses limited financial resource, limited technology and limited managerial skill. A private limited company is suitable for collect the equity capital.
Location of a unit. The most important consideration where to locate the new business unit while selecting a good location the entrepreneur should take into consideration:- Availability of raw material, nearness to the motive power, nearness to the market availability of transportation and communication facility , incentive offer by government, socio-economic and political factor and attitude of people banking and other facility.
Designing the finance scheme : - once the location has been decided research for capital begin, an entrepreneur can depend upon various resources for financing the enterprise and these are as follow
Acquiring the manufacturer know how: - certain project needs special manufacturing know-how. Many institutions of government, research laboratories, research and development department of big industries and certain agency provide knowledge in this field from where the potential entrepreneur can get complicated and special knowledge.
Preparation of project report: - a project report contains the information relating to entrepreneur qualification particular of a unit of demand sources of supply of raw material, the capacity of plant, means of financing, marketing and selling arrangement cost and profitability of the project.
A potential entrepreneur has to pass through various stages for setting up small scale unit. These are as follows:-
The decision to be self-employed: - An educated person has to decide between two option either to work for other as employees or to work for himself as an entrepreneur. If the person possesses the right of knowledge, skill, experience and aptitude the best option for him is to set his own enterprise. This would give him best opportunity to invest, to innovate and to give the best shape of this ideas.
Identification of opportunity: - The viability of units means the business should identify the market needs. The entrepreneur has to do, but the consumer wants he has to produce according to needs and demands of the consumer.
Selection of product on the basis of the market survey: - An entrepreneur has to select the product on the basis of the market survey, An entrepreneur should select the product keeping in view his own capacity, knowledge, motivation. Access the existing demand of the product in domestic and export market.
Selecting the form of business ownership: - The form of business ownership can be a sole trader, partnership firm or private limited company etc. A sole trader possesses limited financial resource, limited technology and limited managerial skill. A private limited company is suitable for collect the equity capital.
Location of a unit. The most important consideration where to locate the new business unit while selecting a good location the entrepreneur should take into consideration:- Availability of raw material, nearness to the motive power, nearness to the market availability of transportation and communication facility , incentive offer by government, socio-economic and political factor and attitude of people banking and other facility.
Designing the finance scheme : - once the location has been decided research for capital begin, an entrepreneur can depend upon various resources for financing the enterprise and these are as follow
- Owned funds
- Borrowings from friends and relatives
- Short term loan from commercial bank
- Long-term loan from financial institutions and banks
Acquiring the manufacturer know how: - certain project needs special manufacturing know-how. Many institutions of government, research laboratories, research and development department of big industries and certain agency provide knowledge in this field from where the potential entrepreneur can get complicated and special knowledge.
Preparation of project report: - a project report contains the information relating to entrepreneur qualification particular of a unit of demand sources of supply of raw material, the capacity of plant, means of financing, marketing and selling arrangement cost and profitability of the project.
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