How to start an Industry

Decision to be Self Employed Decide to go in to Business Analyze Strengths and Weakness Training

Selection of the Product & Process Technologies Making a Product Choice -Organisations/Institutions which help Entrepreneurs about product Choice :- District Industries Centre, Technical Consultancy Organisations MSME Development Institutes – (MSME DI) Khadi & Village Industries Commission

Opportunities in the Small Scale Sector are enormous due to following Factors Less Capital intensive Extensive Promotion & Support by Government Funding- Finance & Subsidies Machinery Procurement Raw Material Sourcing Man power Training Technical & Managerial Skills Tooling & Technical Support

Opportunities in the Small Scale Sector are enormous due to following Factors Preference for Exclusive Purchase by Government Export Promotion Growth in requirements for Ancillary Units Process Selection - Indigenously developed - Imported

Location of the Enterprise Nearer to market & Nearness to Raw materials Infrastructural availability Cost of Transport - Raw Materials - Dispatching finished goods Industrial Estate Availability of Skilled personnel & Wage rates Climatic conditions & Environmental Factors Incentives/Concessions available -Choosing the location of industry - Setting up infrastructure

Choosing a Form of Business Organisation Sole Proprietorship Partnership Private Limited Company Public Limited Company Co-Operatives Joint Hindu Family Business

Preparation of Project Report Introduction Cost of Project Means of Finance Technical Feasibility Economic Viability Financial Implications Managerial Competence

Preparation of Project Report Cost of Working Marketing and Sales Profitability Break Even Point and Key Ratios

Statutory Requirements Registration Statutory Licenses Clearances

Arrangement of Finance The Financial Objectives of the Company Nature and Size of Business The image & Credit worthiness of the Enterprise Growth and Expansion Plans Capital Market Trends Government Regulations Fixed Capital Working Capital

Land and Building Land on Lease Own Land Building on Lease Own Building

Procurement of Machinery Indigenous Machinery Imported Machinery Own Machinery Machinery on Lease

Recruitment of Personnel Un skilled Man power Skilled Man Power Contract Labour Technical Personnel Managerial Personnel

Installation of Machinery

Power Connection/Water Supply Power Connection – HT/ LT Water Supply- Potable water Industrial water

Procurement of Raw Materials Indigenous Raw Materials Imported Raw Materials

Commencement of Production Trial Production Commercial Production Production Capacity Number of Shifts

Marketing/Sales Domestic Market Export Market Direct Marketing Marketing through Distribution Channel Market Segmentation

Repayment of Loans Repayment of Interest Repayment of Principle Gestation period

Profit Generation Profitability of Operations Appropriation of Profits

Avoiding Sickness Analyzing Causes of Sickness - Obsolescence of Technology - Product of Out of Trend - Financial Mismanagement - Wrong H.R. Policies - Government Policies, Rules and Regulations - Lack of Innovation - Misunderstanding amongst founders and Management

Modernization & Technology Up gradation Innovation Creativity Up gradation Observing Industry Trend

Thank you For More details contact Dr. R. Arangannal, 3/100 Bank Colony, 2nd Street, Narayanapuram, Madurai-625 013 E Mail : arangsgm@gmail.com Mobile :94434 60967