CP-305 Presentation

BUSINESS START-UP PROCESS

By Sounak S. Roy (70) Sumit Das (75)

CONTENTS
Introduction Define The Business Idea Define The Market Through Research And Analysis Examining Critical Issues & Making Important Decisions Select The Type Of Business Structure Develop Your Business Plan Conduct Feasibility Analysis Legal Considerations & Requirements Arrange The Business Financing Install Machinery Procure Raw Materials Recruit Personnel Other Steps

Introduction

DEFINE THE BUSINESS IDEA

The following questions will guide in defining a business concept What business will you be in? What product or service will you provide to your customers? Who will buy your product or service? Why will your customer buy from you? When will your customer buy your product or service? How will your customer know you have products or services available? How much will your customers pay for your product or service?

DEFINE THE MARKET THROUGH RESEARCH AND ANALYSIS

Market research tells about who the customers are, where they are, and how large the potential market is. Through research, it is possible to gather certain information and data such as: Demographics Size of the potential market Customer lifestyles and buying behaviour Specifically who the customer is Determine demand for the product or service

EXAMINING CRITICAL ISSUES & MAKING IMPORTANT DECISIONS

Entry options
Buying an existing business Buying a franchise Starting a new business

Selecting and using professionals

INFORMAL ADVISORS PROFESSIONAL ADVISORS

Selecting a business location Minimizing your risks

SELECT THE TYPE OF BUSINESS STRUCTURE

SOLE PROPRIETORSHIP PARTNERSHIP CORPORATIONS LIMITED LIABILITY COMPANY (LLC)

DEVELOP YOUR BUSINESS PLAN

BUSINESS PLAN OUTLINE Cover page
Include the name, address, and phone number of business. Name of company Company address Company phone numbers Logo (if present) Names, titles, and addresses of owners Month and year in which the plan was completed Indicate that the plan is Confidential

Table of contents Executive summary

CONDUCT FEASIBILITY ANALYSIS

SISI
guides entrepreneurs as to the type of industry to start, where to start and how to start it. helps to select the various items of manufacture which have the scope for development in different areas. give valuable information of the various incentives available to the small-scale industries from various organisations. 1. starting point of a project analysis is the establishment of the objectives to be attained 2. next stage is the pre-selection stage consists of mainly three factors market, technical and financial analysis 3. The final stage is the Break Even Analysis

LEGAL CONSIDERATIONS & REQUIREMENTS

REGULATORY REQUIREMENTS PERMITS, LICENSES AND REGULATIONS - to ensure that the business does not violate any zoning regulations or ordinances regarding hazardous activities.
o o o o City or local licenses and permits Privilege License Zoning Income taxes

 LEGAL STRUCTURE OF THE BUSINESS

1. Opening a Current Account - KYC documents needed for opening C/A 2. Applying for PAN card 3. Obtaining trade license 4. Shops and Establishment License 5. Sales Tax and Excise Registration 6. Service Tax registration 7. Obtaining NOC form Local Bodies 8. Obtaining Product specific license 9. Obtaining registration from Legal Metrological department 10. Registration with Chamber of Commerce 11. District Industry centre Registration 12. Registration of forms of Business Organization

 EMPLOYEE RESPONSIBILITY
to ensure that there is no unlawful discrimination towards the employees on the grounds of sex, race, disability, age, sexual orientation, and religion or belief.

Regulation by Central and State Govt

The Factories Act 1948 The Payment Of Wages Act 1936 The Minimum Wages Act 1948 The Payment Of Bonus Act 1965 The Employees Provident Fund Act 1952 The Trade Unions Act 1926

ARRANGE THE BUSINESS FINANCING

EQUITY FUNDING: sell a partial interest or ownership in
the company, Initial public offering (IPO)

DEBT FUNDING
Personal loans - PERSONAL BANK LOANS, LOANS FROM LIFE INSURANCE Operations-related financing - SUPPLIER CREDIT, CUSTOMER CREDIT, LEASING, ACCOUNTS-RECEIVABLE FINANCING, FACTORING, ASSET-BASED FINANCING Business loans - TERM LOANS, DEMAND NOTES, LINES OF CREDIT GOVERNMENT-ASSISTED LOANS

INSTALL MACHINERY
National Small Industries Corporation (March 1956) under a hire-purchase scheme Entrepreneur should enlist himself as a member with NSIC. His application form should be accompanied by the Registration Certificate and report of the Director of Industries. The small entrepreneur has to provide full details along with relevant information

PROCURE RAW MATERIALS

Raw materials components and spares - apply directly to the Regional Licensing Authority for license Non ferrous materials - State Director of Industries allocates indigenous non ferrous metals Iron and steel - MMTC Chemicals - DGTD in accordance with the recommendation of the State Director of Industries

RECRUIT PERSONNEL
Recruitment systems must be simple, with stages that can be followed as a routine whenever there is a vacancy to be filled, and which can be monitored and adapted in the light of experience. efficient - cost effective in methods and sources effective - producing enough suitable candidates without excess and ensuring the identification of the best fitted for the job and the organisation fair - ensuring that right through the process decisions are made on merit alone

Other Steps
CONDUCT TRIAL RUN DECIDE ON PRICING POLICY ORGANISE MARKETING PLAN RECORD KEEPING PRODUCE GOODS KEEP ON MOTIVATING AND UPDATING DIVERSIFICATION MODIFICATION COMPETE WITH OTHERS ANCILLARY DEVELOPMENT

Thank You