Entrepreneurship Project
Entrepreneurship Project
Entrepreneurship Project
By:
RAMESH.K (RA1552001020057)
Entrepreneur should undertake the task of preparing the business plan personally. Although
outsiders - consultants, accountants, and lawyers - should be tapped for their advice and
expertise, the promoter or the initial top management team should be responsible for the writing.
Personally drafting the plan will enable the entrepreneurs to think through all aspects of the
proposed business and ensure that they are familiar with all the necessary details, for they will
have to make decisions about the new venture and be responsible for those decisions.
product/service is a niche product or service with substantial prospects for growth and
capable of attaining a competitive position in the market.
Environmental Influences - The impact of the environmental influences such as
political, economic, technological, socio-demographic and ecological factors that affect
your area of business.
Quality - The quality control measures to be put into place for ensuring quality of the
product/service.
Marketing - Identify the target market which should be substantiated by a thorough
market research. Once the target market has been identified, focus on the communication
strategy including advertising, branding, packaging etc.
Sales Forecast - Sales forecast is primarily dependent on three factors - size of the
market, fraction of the market you will be able to capture as a result of your marketing
strategy and the pricing strategy.
Financial Plans - A new venture must show projected profit and loss statements and cash
flow statements.
Human Resources - Make an organisation chart with details of key executives and
profiles of individuals likely to be hired.
Form of Business - Describe the legal form of your business - whether it is a sole
proprietorship or a partnership, public limited co., private limited co. or society, etc.
Critical Risks - As a legal and moral obligation, the entrepreneur must, in the business
plan, envision risks the investor would be undertaking in case he makes a choice to invest
in your business. This will protect you from civil and criminal liability.
The State and Central Government offers incentives like land and building tax concessions,
providing land at cheaper rates through the Government Agencies to new and existing
entrepreneurs. It also offers concessions in water tariff, power subsidy, subsidy on generating
sets, capital investment subsidy, transport subsidy, insurance subsidy, incentive for pollution
control and quality equipment depending on the location, size of investment and category of the
industry.
6) Sourcing Process, Raw Materials, Machineries and Equipments
The next important step is to select appropriate technology and equipment to produce the same.
In addition to this, the source of raw material has to be decided upon. The requirements of all
these can either be met through domestic sources or can be imported subject to the regulatory
requirements of the Government.
Process Selection:
While choosing the process technology, following considerations are essential:
The level of skilled workers or complex machines required by the process.
If any process or product patent is needed in order to utilize the selected process
technology.
Raw Materials:
Proper planning of raw materials is essential because non-availability of the required raw
material may result in production hold-ups, idle machinery and manpower. On the
other hand if too much is ordered too soon, considerable amount of working capital gets locked
up. All this will lead to increased production costs. But proper inventory management can lead to
manageable cash flow situations. For imported raw material whose lead time are large, proper
planning is all the more essential.
Key issues to be considered by the entrepreneur regarding sourcing of raw material are:
Identify the raw material required for manufacturing the desired product.
Whether locally available in sufficient quantity and quality or has to be sourced from
outside.
Price trends, demand & supply of critical raw materials.
Products whose production is subject to seasonality of supply. Continuity of supply to be
assessed.
Compare the prices and get quotation from atleast 3-4 places and also check whether
price is inclusive or exclusive of transportation costs.
Arrangements for procurement.
Transportation to the site with respect to cost, wastage / damage during transportation,
etc.
Whether raw materials can be purchased on credit, cash or advance.
7) Pricing your Product
Fixing the right price for a product is the most difficult task as it affects the volume of sales of
the product of the firm as well as the profits of the firm. Prices are set by a firm by taking into
consideration factors like costs, profit targets, competition and perceived value of products.
Taking into account the various factors, the steps generally followed in setting the price of a
product are:
8) Financing a Business
A business firm requires finance to commence its operations, to continue its operations and for
its expansion and growth. Hence, a financial plan needs to be prepared, which indicates the
requirements of finance, sources for raising the finance and the application of funds. Financial
planning for starting a business begins with estimating the total amount of capital required by the
firm for the various need of the business.
promotion and market development etc. For details please visit http://www.apeda.gov.in
8. Ministry of Food Processing Industries (MoFPI) covers setting up technology upgradation,
modernization of food processing industries in fruits & vegetables, pulses etc. The scheme
provides 25% of the cost of plant & machinery and technical civil works subject to a
maximum of Rs.50 lakhs in general areas and 33% up to Rs.75 lakhs in difficult areas like
NER. For details please visit http://indarun.gov.in/htm/foodprocessing/decentral.pdf
9. National Horticulture Board (NHB) provides financial support for land development,
cultivation expenses, poly house or shade nets, farm tools etc. For details please visit
http://nhb.gov.in/