primary information services for start up ventures

1. Starting An Enterprise:
18 Steps

2. The First Step
The individual has to take the decision to
get self-employed rather than scout
for job.
The personality traits of the to be
entrepreneurs are: Intuition:
Instantaneous and instinctive
perception of Opportunities
Vision :Imaginative foresight
Optimism : Faith in oneself and
confident endeavor in search of
opportunities
Dynamism : An ability to face the pace
of change
Enterprise: Rational risk taking and
capacity to manage men & material

3. Second Step
• Decision on the type of activity to be undertaken
or the identification of the dream project.
Thousands of
manufacturing projects, service ventures,
Business activities are possible under the small
industry sector
classified as mechanical, electrical, electronics,
glass, ceramics, hosiery, food leather, and other
categories.
Entrepreneurs have to carefully think over on the
project selection taking into consideration
several factors such as:
a) His inclination/aptitude towards the project,
b) His background such as education, technical
skills, and training
c) Potential for making profits
d) Availability of technical know-how, machinery
and raw materials
e) Substantial market/demand for the
products/services planned
f) Capacity to invest : the project investment
requirements should be within the limits of the
entrepreneur

4. Third Step
• Deciding on the size of
the project:
The level of Investment will
decide the status of the
venture under any of the
following categories:
small manufacturing industry,
ancillary industry, export
oriented unit, tiny sector,
service venture or Business
enterprise. One has to take
this decision depending on
one's investment capacity

5. Fourth Step
• Location of the Project:
The selection of the place to
setup venture as to be done
taking into consideration the
following:
a) Nearness to market
b)Availability of basic
infrastructures like power,
water, roads, trained labor,
communication facilities etc
c) Availability of industrial
sheds and so on.

6. Fifth Step
Preparation of the Project Report-Technical Feasibility
This is an important step which not only describes all
the features of the project but also justifies the
feasibility of the
dream with all the details to convince not only the
entrepreneur but also others who are to commit
resources for the project. Many financial institutions
prescribe specific formats in which the report has to be
prepared. One has to
check and decide the format according to the needs. A
study of technical feasibility is to ensure that the
activity
proposed can be accomplished and that the inputs are
not only adequate but also optimum. However
the project report should cover the entire spectrum of
activity and include the following:
a) Land & Building b) Plant & Machinery c) description
of the product/service/business d) production process
and technology e) Inputs required such as raw
materials, power, water, labor f) Plant layout & flow
chart
Decision should also be taken on ownership
(proprietary/partnership).

7. Sixth Step
• Financial Viability
The project should not only
technically feasible but also
financially viable. Financial viability
means that the products/services
can be produced at reasonable cost,
marketed at competitive price with
decent profit. The project report
should contain proposed
investments in capital items, working
capital needed, &Breakeven level of
operation. The Financial feasibility
analysis is complete only when the
total financial requirements for
implementing the project are
assessed and sources of financing
the project identified. While
considering financial feasibility, the
ability of the promoter entrepreneur
to bring in his share of contribution
must always be kept in view.
• To know more on "Feasibility Study"

8. Step Seven
Arrangement of Finance -
Long Term Finance Funding requirements of a
Project are of Long term needs for acquiring fixed
asses like land & Building,
Plant & Machinery and for security deposits and
working capital margin. Short term advances for
working Capital in the form of
pledge/hypothecation/cash credit/bills facility.
The term Loans for fixed assets land, building,
plant & machinery are preferably got from State
Financial Corporation

9. Step Eight
Arrangement of Finance - Working Capital
The Industrial Unit needs short term loans for
its working capital requirements. Working
Capital is required for:
Purchase of raw materials, Consumable
Stores/Spares ,Stock in Process Manufacturing
Expenses ,Credit Sales/Bills Receivable

10. Step Nine
Provisional registration as small industry
District Industries Centres issue the
registration based on Project report of
the Entrepreneurs. This registration is
required to obtain Industrial sheds
from Government built Estates, to
obtain license from Municipal
corporations, to get power connection
from electricity board, to apply for
loans from Banks.

11. Step Ten
Acquiring Industrial Shed
Factory Building can be rented or owned. Investment
in Land & Building is better to be avoided in the initial
stages to prevent locking up of funds and increase of
borrowed capital. It is advisable to go in for Industrial
sheds in approved areas or estates.
If the factory building is to be constructed it should
be ensured that the land is free from encumbrances,
it can be used for industrial purposes and all needed
infrastructure facilities are available. Before starting
construction activities, the entrepreneur has to
obtain necessary license from corporation or
municipal authorities and should also ensure the plan
of the building conform to the norms stipulated by
the inspector of factories. The small industry
development corporation of the state offer
constructed sheds in the industrial estates.

12. Step Eleven
Purchase of Machinery
The requirements of machinery, spares, tools etc
are to be carefully assessed and the proper size
of plant & machinery should be decided. Once
fixed assets are created it will be difficult to
change them. The machinery should be
necessary and adequate.
It is some time cheaper and convenient to have
some components bought out or got done on job
works basis from outside making investments on
machinery for making them. The Names of
different machines & suppliers be obtained. Then
get Quotations, evaluate specifications, quality,
delivery time, price and decision to be taken to
place orders for machines

13. Step Twelve
Raw Materials
Entrepreneur has to ensure timely
availability of raw materials for
continuous production. Modern
Material Management & Inventory
methods have to be understood &
followed.

14. Step Thirteen
Statutory Licenses
Many product lines if taken up for
manufacturing need licenses and
one cannot ignore them.
Manufacture of drugs & Cosmetics
need license from drug controllers,
food processing industry from
ministry of agriculture, Inspector of
factories, Pollution Control Boards,
Commercial Tax departments,
Collector of Central Excise and so on
depending on the products to be
made.

15. Step Fourteen
• Man Power Needs
A realistic assessment of the man power
requirement in skilled, semiskilled and
unskilled category should be made after
deciding on the size of operations.
Recruitments have to be carefully made at the
right time.

16. Step Fifteen
• Synchronizing various aspects
The various aspects of preliminary operations to
establish an industry should be synchronized
within a time frame. The machinery orders
should be placed in such a way that it arrives
after the shed is constructed and ready. The man
power is to be in place just before the machine
arrive and the power connection will be available.
The orders for materials and other tools etc be
placed at appropriate time. The Statutory
clearances should be obtained while the entire
exercise is in progress

17. Step Sixteen
Power Connection
The power connection should be obtained
without delays. It is always better to contact
the Electricity Board once the location
is decided and quantum of power needed is
estimated to check availability of power lines.
Applications should have been submitted on
time and authorities convinced on all
procedural aspects.

18. Step Seventeen
Production
Entrepreneur should draw
blue print of layout of
factory, install machinery &
plan production. once
planned then production to
be commenced taking care
of quality & time schedules

19. Step Eighteen
Marketing is the most important aspect the
entrepreneurs are to plan for. Making a study
of Government marketing assistance's
programs, appointing distributors, dealers,
retailers have all to be carefully done
appropriate to products marketing strategy.
Watching competitors & taking care of
customers are very important.
We congratulate you...If you have read all the
18 Steps - BEST OF LUCK