MINI PROJECT REPORT

ON

“CEILING FAN GENERATE WARM AIR

IN WINTER”
Towards partial fulfillment of
Master of Business Administration (MBA)
(Affiliated to DR. A P J Abdul Kalam Technical University, Lucknow)

Submitted By: Submitted To:

Parvej Alam Mr. Rinku Pandey
MBA 1st Semester (Assistant Professor)
BBD ITM, Lucknow BBD ITM, Lucknow

SESSION 2021-2022
DEPARTMENT OF MANAGEMENT

Babu Banarasi Das

Institute of Technology & Management
Sector 1, Akhilesh Das nagar, Faizabad Road, Lucknow (U. P.), India
 DECLARATION

I hereby declare that the field work entitled of “CEILING FAN GENERATE

WARM AIR IN WINTER” submitted to the university is a record of an original

work done by me under the guidance of Mr. Rinku Pandey (Assistant Professor)

(BBD ITM, Lucknow) and this Mini report is submitted in the partial fulfillment of

Master in Business Administration.

Date: Parvej Alam

Place: MBA 1st Semester

 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to our H.O.D. DR. MEETU

PANDEY who gave me the golden opportunity to do this wonderful opportunity to

pen down a innovative business plan and also helped me in doing a lot of Research

and I came to know about so many new things I am really thankful to her.

I am highly indebted to my Faculty guide MR. RINKU PANDEY Ma’am for their

throughout guidance and constant supervision as well as for providing necessary

information regarding the project & also for their support in completing the project.

I would like to express my gratitude towards my parents & my college mates for their

kind co-operation and encouragement which help me in completion of this project.

However, it would not have been possible without the kind support and help of many

individuals and organizations. I would like to extend my sincere thanks to all of them

who have willingly helped me out with their abilities.

Parvej Alam

MBA 1st Semester

 PREFACE

I respect to the allotted project, I have inherited myself as an entrepreneur in this

organization but informally it is a sacred place for me as it’s my first practical

exposure to an organization to know and get aware to an organizational real practical

stressful environment. Although I am student of MBA It is a two year full time degree

courses. So far this training is scheduled for first semester syllabi of AKTU i.e. (Mini

Project) as a separate topic to be asked in detail in viva-voice conducted by external

Thus study will provided me a better opportunity to survive in cut throat competition

with a prosperous existence. I have tried my best to gain out of well framed

circumstances & with the help of experienced personnel who helped me out so for

become possible to them. As being a very confidential functioning many things are

there which can’t be known but on the basis of gathered information and certain hints,

the project has been formed. It may have something missing but I have tried to present

all things what I have received. Although this report has been got checked by different

personnel but after that if there is some shortcomings I expect it to be rectified. So the

whole study bifurcated in different parts. Certain observations & suggestions also

have been stated which if possible to be reviewed.

 TABLE OF CONTENT

Sr. No. Topic Page no.

1. Introduction

2. Objective of innovation

3. Need of innovation

4. Source of idea

5. Uses of the service functional areas of services

6. Competitors analysis SWOT analysis of service

7. Technical feasibility

8. Market analysis

9. Costing and pricing of the service

10. Financial feasibility or available sources of funds

11. Limitations

12. Future changes

13. Conclusion
 INTRODUCTION
Run ceiling fans on low in a clockwise direction during cold weather.

Ceiling fans can produce the opposite effect in the winter by gently circulating hot air

that is trapped near the ceiling. Since heat rises, the temperature near the ceiling is

greater than at floor level. This is particularly true in houses with high ceilings or

those with heating systems that do not circulate the air.

The reason the fan is set to rotate clockwise on low is to keep from creating a strong

draft, which would cool you down just like it does in summer. Instead, the air near the

ceiling is pushed up and outward, causing it to circulate down near the perimeter of

the room.

Since the air at floor level is warmer, the thermostat can be set lower, saving money

and helping the environment at the same time. Any heat generated by the fan’s motor

is a bonus in the winter, so you can keep it running whether you are present in the

room or not.

Ceiling Fans: The Next Big Business Opportunity in India?

 Ceiling fans are now being perceived as status symbols by many

consumers

 Consumer electronics heavyweight LG has also entered the ceiling fan

market

 Brands are so positive that they are setting up experience zones to

retail these across the country

1
Gone are the days when ceiling fans were considered as wind blowing machines.

Companies including the likes of Ottomate, Fanzart and Atomberg have brought a

revolution out of these. A revolution that is not only a big business opportunity in

India, but also in the lands that fall outside Indian borders.

Fanzart, which promotes itself as a luxury fan brand in India, says it designs and sells

fans in accordance with room types. Tarun Lala, executive director, Fanzart told

Electronics For You, ―As ceiling fan specialists, our vision is to revolutionise the

ceiling fan industry. We have started offering fans that are designed keeping specific

room types in mind. Fanzart designs fans for drawing rooms, bedrooms, offices and

every other corner of a house or commercial property.‖

Atul Jain, SVP and business head, Fans, Orient Electric Limited, says, ―Consumers

are willing to spend higher on the products that make their experiences better and life

easier while also offering them the pride of ownership. Like people flaunt their rides

2
and other luxury possessions, they are now opting for premium appliances including

fans to make a lifestyle statement.‖

As a matter of fact, ceiling fans have become such a big opportunity that an Indian

startup is nearing revenue of about Rs 1000 million from its business around these.

Called Atomberg, this startup is located in Mumbai, and is led by engineers from IIT.

Let’s start with the size of ceiling fan industry

While different reports claim different numbers, industry majors tell us that the

ceiling fan industry in India is huge! How huge?

Atul Jain answers, ―The total size of fan market in India is around 55-60 million units,

of which organised fans constitute 40-45 million. The fan market in India consists of

ceiling fans, table fans, wall fans, pedestal fans, exhaust fans and multi-utility fans.‖

Fanzart’s Tarun Lala also has an answer. Though he did not quote any figures, his

answer clearly reflects the kind of growth Fanzart sees in the ceiling fan industry. He

states, ―The most recent revolution in India was in terms of LED lights and

smartphones. We expect the ceiling fan market size to be massive, bigger than this

LED TV revolution.‖

Interestingly, conventional light bulbs used in India were considered power hungry. A

normal bulb that retailed for Rs 10 about five years ago in the country consumed

100W power per hour. What made LED bulbs a revolution is not just the power

consumed, but the amount of light they give out despite using these low power

figures! For example – A 25W LED bulb consumes 75W lesser than a 100W bulb, but

gives out around 2400 lumens. A 100W conventional bulb, on the other hand, gives

out only 1400 Lumens.

3
Modern ceiling fans and innovation

Orient Aeroslim

Something similar is becoming a trend in the world of ceiling fan manufacturers.

Brands including the likes of Fanzart, Orient and Ottomate, have now started retailing

fans equipped with BLDC motors. These motors, also known as inverter motors,

promise energy savings of up to 60 per cent.

Atul Jain shares that consumers in India are getting more aware about the energy

consumption and brands will have to answer more to such users now. He says, ―With

consumers getting more aware about energy consumption, there has been a notable

increase in the demand for energy efficient fans over the years. The use of BLDC

motor, also referred to as inverter technology, in fans ensures 40-50 per cent energy

savings in comparison to ordinary induction motor-based fans.‖

Atomberg markets its fans by educating the consumers about the power saving

capabilities of a BLDC motor. The next in line of innovation in terms of ceiling fans

comes in the form of hot air cool air technology. What this simply means is that a

ceiling fan equipped with this technology can deliver cool air in summers and hot air

in winters.

Atul Jain adds, ―With IoT gaining popularity, people are increasingly adopting smart

home devices which can be easily controlled using smartphones, voice assistants or

tabs. Such swift is the shift that even the most common cooling appliance like fan has

4
gone smart. In line with the trend, we have introduced IoT-enabled Aeroslim fan

which is being widely appreciated by the consumers.‖

Tarun Lala shares that summer-winter feature is something that Fanzart is most

excited about. He says, ―All the conventional ceiling fans go anti-clockwise and

deliver cool breeze. Fanzart’s summer-winter fans can reverse the flow of current and

go clockwise as well. What this does is it enables fans to deliver warm air as well.‖

As simple as it sounds, Fanzarts says that it has seen thousands of takers of its

summer-winter fans in India. Additionally, the company has tied up with interior

designers and architects to project these fans to potential consumers. The catch – these

cost upwards of Rs 15,000!

Sales channels are evolving too

The evolution is not only happening in terms of designs and capabilities but in sales

channels as well. When you have ceiling fans especially designed for drawing rooms,

bedrooms and all other types of rooms, you can’t simply put them up on an e-

commerce portal or inside a brick-and-mortar shop and expect sales to happen.

5
 OBJECTIVE OF INNOVATION
 To differentiate your organization in the marketplace

 To build customer loyalty

 To identify savings potential

 To achieve revenue potential

 To accelerate exploitation of new business ideas worthy of pursuing

 To a build climate and culture of innovation as per the organization's innovation

mission

 To become a leading innovation brand for products and services in the markets

served and new markets you may serve

 To improve and expand current products and services

 To access new technologies

 To access new markets

 To identify market trends

 To improve product quality and associated core processes

 To improve employee attraction, engagement, and retention

 To develop new competencies

6
 NEED OF INNOVATION
Ceiling fans should rotate in a clockwise direction in winter, which will cause the fan

to blow cold air towards the ceiling. By turning the fan to low for a continuous and

gentle updraft, warm air will circulate from top to bottom.

Some older ceiling fans don’t have the reverse switch. Consider upgrading your

ceiling fan for year-round efficiency and comfort.

Ceiling Fan Benefits

Running ceiling fans in reverse can save you around 10% on heating and air

conditioning costs.

Ceiling fans allow you to raise or lower the temperature of your thermostat

(depending on the season) about 4°F with no reduction in comfort. This could be the

difference between a running or a silent HVAC system. The less you use the HVAC

system, the longer it will last.

Moving warm air downward reduces the amount of escaped heat in the attic. The less

escaping air, the less of a stack effect. Sealing air leaks around your home, especially

the basement and attic will help even more.

Ceilings fans improve airflow and your home’s indoor air quality. While ceiling fans

should never serve as your only ventilation method, they can help circulate stale air

and prevent moisture problems, such as mold.

7
 SOURCE OF IDEA

Human mind:- Human mind is the main source of innovations. In

business, innovation often results when ideas are applied by the company in order to

further satisfy the needs and expectations of the customer

• Unexpected Occurrences:- Consider, first, the easiest and simplest source of

innovation opportunity: the unexpected....

• Incongruities....

• Process Needs....

• Industry and Market Changes....

• Demographic Changes....

• Changes in Perception....

• New Knowledge.

• Innovation is based upon bright ideas. The human mind thinks of new things

that can better fulfill an existing need. In this process he thinks of filling his needs in

new ways and by devising new products and mechanisms. Demographics: Our

lifestyles can also be a source of innovation

8
 COMPETITORS ANALYSIS

1. Determine who your competitors are.

2. Determine what products your competitors offer.

3. Research your competitor’s sales tactics and results.

4. Take a look at your competitors' pricing, as well as any perks they offer.

5. Ensure you're meeting competitive shipping costs

There is no competition in the market

because it is a very new service which has
its own value and has no other alternatives

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 SWOT analysis — strengths, weaknesses,

opportunities, threats —
It is something many MBA students learn. Unfortunately, businesses frequently treat

SWOT analysis like geometry — one of those things you have to learn but will never

use again. But SWOT analysis offers a concrete, real-world audit of a company and a

scan of its relative standing within an industry.

While strengths and weaknesses are internal, they are measured on a comparative

benchmark. Opportunities and threats are external — your opportunity is usually at

the expense of another company in your industry. Likewise, threats come from the

competition. Therefore monitoring your competition on an ongoing basis is a

necessity.

STRENGTH:- No Competitors

WEEKNESS:- Not Much Knowledge about the Current scenario.

OPPORTUNITIES:- Can float nationwide if excels in small scale .

THREATS:-As its startup high risk as well as high capital required.

CONCLUSION OF SWOT ANALYSIS

Using SWOT analysis on a regular basis, perhaps once or twice a year, will give you a

broad overview of ecommerce industry trends, show you where you stand in relation

to your competitors, and provide insights into mitigating your weaknesses and

building on your strengths.

10
 TECHNICAL FEASIBILITY

A technical feasibility study assesses the details of how you intend to deliver a

product or service to customers. Think materials, labor, transportation, where your

business will be located, and the technology that will be necessary to bring all this

together. It's the logistical or tactical plan of how your business will produce, store,

deliver, and track its products or services.

A technical feasibility study is an excellent tool for both troubleshooting and long-

term planning. It can serve as a flowchart of how your products and services evolve

and move through your business to physically reach your market.

It's the logistical or tactical plan of how your business will produce, store, deliver, and

track its products or services.

Yes it is technically possible by analyzing through (PESTEL)

11
 MARKET ANALYSIS

A market analysis is a quantitative and qualitative assessment of a market. It looks

into the size of the market both in volume and in value, the various customer

segments and buying patterns, the competition, and the economic environment in

terms of barriers to entry and regulation.

How to do a market analysis?

The objectives of the market analysis section of a business plan are to show to

investors that:

• you know your market

• the market is large enough to build a sustainable business In order to do that I

recommend the following plan:

Demographics and Segmentation Target Market

Market Need Competition Barriers to Entry Regulation

Segmentation helps marketers to be more efficient in terms of time, money and other

resources. Market segmentation allows companies to learn about their customers.

They gain a better understanding of customer's needs and wants and therefore can

tailor campaigns to customer segments most likely to purchase products.

One technique used to identify a target market is market segmentation. The five basic

forms of segmentation are demographic (population

statistics), geographic (location), psychographic (personality or lifestyle), benefit

(product features), and volume (amount purchased).

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 POSITIONING OF THE BUSINESS IN MARKET

Positioning is a marketing concept that outlines what a business should do to market

its product or service to its customers. In positioning, the marketing department
creates an image for the product based on its intended audience.

This is created through the use of promotion, price, place and product.

There are five main strategies upon which businesses can base their positioning.
• Positioning based on product characteristics....
• Positioning based on price....
• Positioning based on quality or luxury....
• Positioning based on product use or application....
Positioning based on competition. Types of positioning in marketing

• Pricing. Pricing is an essential factor that impacts the decisions of most

customers...
• Quality. Quality can help rebuff most pricing wars....
• Differentiation....
• Convenience....
• Customer service....
• User group....
• Create a strong competitive position....
• Improve sales.

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 COSTING AND PRICING OF THE SERVICE

Many service-based businesses struggle to come up with a fair and profitable pricing

strategy. Unlike product pricing, you can’t exactly quantify all the costs that go into

providing a service.

The expenses that go into providing a service are more subjective than the expenses

that go into making a product. How much you charge customers doesn’t always

directly correlate with the amount you pay to perform services.

In service industries, finding a target profit margin is not as simple. You don’t have an

original price to reference. Instead, your pricing formula for services should account

for the intangible aspects of running your business, such as time and value.

In short, pricing services is tricky business.

As a service-based business, it’s difficult to price services because we need a model

that is scalable yet flexible enough to solve our customers’ problems. Offering a

scalable, one-size-fits-all price can turn potential customers off because their needs

are typically not like those of your countless other customers. At the same time,

offering 100% custom pricing can limit growth because of the time required to quote

every facet of your services.‖

Your 6-step guide

Because there is not a set-in-stone method for pricing services, you have some

flexibility. Use the following six steps to learn how to price a service:

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1. Calculate your costs

2. Look at the market

3. Know your customers

4. Consider time invested

5. Come up with a fair profit margin

6. Charge an hourly or per-project rate

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 PRICING STRATEGIES FOR BUSINESSES

There are many different pricing strategies to choose from. Here are 11:

1. Market penetration strategy: Set prices low to grow market share. Then

increase your rates over time as your customer base grows. Admittedly, this isn’t a

common pricing strategy for service businesses, but it can help you grow your

customer base quickly. The big problem with this approach is that some customers

may associate the lower price with an inferior level of service. You will also have to

work a lot harder to coveryour costs

2. Price skimming: The opposite of a market penetration strategy. Here you set a

high price and lower it over time. Again, this isn’t your typical pricing strategy for a

service business. But it may work if you have something special to offer. The pros are

that you’ll maximize your profits upfront and grow a more sustainable business. The

big drawback, however, is that if you can’t justify the price, you’ll struggle to get your

business off the ground.

3. Premium pricing: Charge higher prices because you have something that

makes you unique. For example, do you offer a warranty or service guarantee that

your competitors do not? Do you use exclusive tools or technology that make your

business easier to work with and deliver results that standout?

4. Economy pricing: Set low prices because overheads are low. Your costs may

be low for several reasons. Perhaps you use software to org anize and manage your

business instead of hiring an assistant. Or maybe you have a special arrangement with

one of your suppliers which allows you to get inexpensive supplies.

5. Cost-plus pricing: Calculate the cost to deliver your services and add a margin

for a profit. For example, if you know your time and materials cost $200, and you

want to make a 20% profit margin, simply charge $240. This is a straightforward

16
pricing strategy, but it can cost you money because you may end up setting a lower

price than what customers are actually willing today.

6. Psychological pricing: Prices based on the psychological impact they have.

For example, it’s believed that odd prices like $19.97 are more attractive than round

numbers like$20.00.

7. Competitive pricing: Charge according to what the competition charges. While

competitors can give you a good idea of where to start, remember that your business

is unique. Just because someone is charging a specific price doesn’t mean you should

match or undercut them.

8. Bundled pricing: Also known as packaged pricing, this strategy involves

bundling various services together and charging one price. Bundled services are

usually cheaper than if customers were to purchase each service individually. If done

correctly, this technique is a great way to upsell more services and boost your

profits—as Dave Moerman of Revive Washing notes:

―Our house washing package is our most requested and most profitable service. This

is a full soft wash of siding, windows, and gutters).

Homeowners like this package because it takes care of all services with one detailed

visit…For our crew to be profitable, we have to do a certain amount of revenue per

day. Small jobs are okay to slot in, but we like to have a good-size house wash for

each crew for each day. From a profitability perspective, it’s much better.‖

9. Tiered pricing: Offer clients the option of choosing between different levels of

service or packages. In window cleaning, for example, you can offer a basic package

for $99 (outside cleaning only), a standard package for $149 (inside and outside), or a

deluxe package for $199 (inside, outside, tracks and sills). Each package offers

17
incrementally more value, and the difference in price gives the consumer a chance to

consider what they are willing tospend.

10. Value-based pricing: Charge a flat fee based on the value (benefits) your

service provides. Value, for example, could mean saving the customer time or giving

them peace of mind. Before quoting a client, make sure you’re clear on the benefits

your service provides and, in turn, what they’re actually paying for.

For example, parents who use house cleaning services are not really paying for the

service itself, but the time it frees up so they can spend with their children. Charging

for your services based on value lets you charge a premium and protects you from the

all-too-common price haggling that occurs with some customers.

11. Hourly-based pricing: Estimate how long a job will take and multiply it by

your hourly rate. Although this pricing strategy may be suitable when starting a

business, do use it with caution as it has its downfalls:

You aren’t rewarded for becoming better and faster at what you do

Clients may feel you’re purposefully taking your time on a job so you can earn more

The focus is on the cost of the service rather than the value, which opens you up to

price haggling

Factors to Help You Choose the Right Service Pricing Strategy

Your overheads. If you have lower overheads, you can charge more competitive

prices. Conversely, if your costs are high, then competing on price isn’t viable.

You’re better off charging a premium based on a unique differentiator.

 Your goals. If you’re a new business looking to get customers fast, you may opt for

a market penetration strategy to achieve rapid adoption.

 How established you are. If you’ve been operating for a few years and want to

grow faster and sustainably, offering packages is a good option. Providing

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 packages helps you sell more by turning the intangible (your service) into

something tangible (a product), which makes it easier for customers to buy.

 The Bottom Line on Pricing Strategies for Service Businesses

 Pricing services is generally harder than pricing products as each job is different,

and you have to grapple with your own experience, insecurities, and specifics of

each job. On top of that, pricing is complex with many different pricing strategies

to choose from.

 Of course, just because something seems difficult, doesn’t mean it is or that you

shouldn’t try. After all, the more jobs you bid for, the more you’ll learn about what

works and what doesn’t. It’ll only be a matter of time before you find a pricing

strategy that’s right for your business.

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FINANCIAL FEASIBILITY OR AVAILABLE SOURCES

OF FUNDS

Putting all your eggs in one basket is never a good business strategy. This is

especially true when it comes to financing your new business. Not only will

diversifying your sources of financing allow your start-up to better weather potential

downturns, but it will also improve your chances of getting the appropriate financing

to meet your specific needs.

Keep in mind that bankers don't see themselves as your sole source of funds. And

showing that you've sought or used various financing alternatives demonstrates to

lenders that you're a proactive entrepreneur.

Whether you opt for a bank loan, an angel investor, a government grant or a business

incubator, each of these sources of financing has specific advantages and

disadvantages as well as criteria they will use to evaluate your business.

Here's an overview of seven typical sources of financing for start-ups:

1. Personal investment

When starting a business, your first investor should be yourself—either with your

own cash or with collateral on your assets. This proves to investors and bankers

that you have a long-term commitment to your project and that you are ready to

take risks.

2. Love money

This is money loaned by a spouse, parents, family or friends. Investors and bankers

considers this as "patient capital", which is money that will be repaid later as your

business profits increase.

 When borrowing love money, you should be aware that:

 Family and friends rarely have much capital

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 They may want to have equity in your business

 A business relationship with family or friends should never be taken lightly

3. Venture capital

 The first thing to keep in mind is that venture capital is not necessarily for all

entrepreneurs. Right from the start, you should be aware that venture capitalists are

looking for technology-driven businesses and companies with high-growth

potential in sectors such as information technology, communications and

biotechnology.

 Venture capitalists take an equity position in the company to help it carry out a

promising but higher risk project. This involves giving up some ownership or

equity in your business to an external party. Venture capitalists also expect a

healthy return on their investment, often generated when the business starts selling

shares to the public. Be sure to look for investors who bring relevant experience

and knowledge to your business.

 BDC has a venture capital team that supports leading-edge companies strategically

positioned in a promising market. Like most other venture capital companies, it

gets involved in start-ups with high-growth potential, preferring to focus on major

interventions when a company needs a large amount of financing to get established

in its market.

4. Angels

Angels are generally wealthy individuals or retired company executives who invest

directly in small firms owned by others. They are often leaders in their own field who

not only contribute their experience and network of contacts but also their technical

and/or management knowledge. Angels tend to finance the early stages of the

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 business with investments in the order of $25,000 to $100,000. Institutional venture

capitalists prefer larger investments, in the order of $1,000,000.

In exchange for risking their money, they reserve the right to supervise the company's

management practices. In concrete terms, this often involves a seat on the board of

directors and an assurance of transparency.

5. Business incubators

 Business incubators (or "accelerators") generally focus on the high-tech sector by

providing support for new businesses in various stages of development. However,

there are also local economic development incubators, which are focused on areas

such as job creation, revitalization and hosting and sharing services.

 Commonly, incubators will invite future businesses and other fledgling companies

to share their premises, as well as their administrative, logistical and technical

resources. For example, an incubator might share the use of its laboratories so that

a new business can develop and test its products more cheaply before beginning

production.

 Generally, the incubation phase can last up to two years. Once the product is ready,

the business usually leaves the incubator's premises to enter its industrial

production phase and is on its own.

 Businesses that receive this kind of support often operate within state-of-the-art

sectors such as biotechnology, information technology, multimedia, or industrial

technology.

6. Government grants and subsidies

 Government agencies provide financing such as grants and subsidies that may be

available to your business. The Canada Business Network website provides a

22
 comprehensive listing of various government programs at the federal and

provincial level.

 Criteria

 Getting grants can be tough. There may be strong competition and the criteria for

awards are often stringent. Generally, most grants require you to match the funds

you are being given and this amount varies greatly, depending on the granter. For

example, a research grant may require you to find only 40% of the total cost.

 Generally, you will need to provide:

 • A detailed project description

 • An explanation of the benefits of your project

 • A detailed work plan with full costs

 • Details of relevant experience and background on key managers

 • Completed application forms when appropriate

 Most reviewers will assess your proposal based on the following criteria:

 • Significance

 • Approach

 • Innovation

 • Assessment of expertise

 • Need for the grant

 Some of the problem areas where candidates fail to get grants include:

 • The research/work is not relevant

 • Ineligible geographic location

 • Applicants fail to communicate the relevance of their ideas

 • The proposal does not provide a strong rationale

 • The research plan is unfocused

23
 • There is an unrealistic amount of work

 • Funds are not matched

7. Bank loans

 Bank loans are the most commonly used source of funding for small and medium-

sized businesses. Consider the fact that all banks offer different advantages,

whether it's personalized service or customized repayment. It's a good idea to shop

around and find the bank that meets your specific needs.

 In general, you should know bankers are looking for companies with a sound track

record and that have excellent credit. A good idea is not enough; it has to be

backed up with a solid business plan. Start-up loans will also typically require a

personal guarantee from the entrepreneurs.

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 LIMITATIONS
The following are some of the factors which put a limit on the growth of a business:

1. Shortage of Labour or Capital:

If increased supplies of trained labour are not available, the growth of a business will

be automatically checked.

In the same way, if fresh capital cannot be raised, expansion stops. But these are not

insurmountable obstacles.

2. Nature of the market: If demand is limited or fluctuating, it will be imprudent

to increase the size of the business. The nature of demand is the most

importantlimitingfactor.Italmostsettlesthematter.Ifindividualtasteshavetobe satisfied,

large-scale production is ruled out.

3. Managerial Capacity: Another serious limitation comes from the capacity of

the manager. A point is reached in the expansion of a business beyond which it is not

possible for the manager to control it efficiently. There is a limit to what a man can

successfully manage. Beyond that point, supervision will become lax, materials will be

wasted and machinery mishandled. Cost will over take profits, and, in the end, the

profits may vanish. The limit is reached when the marginal revenue is equal to the

marginal cost.

4. Nature of the Industry: In some industries, large-scale production is out of the

question. They require close personal supervision, e.g., jewellery-making and tailoring.

Or, there are industries where there is not much scope for the use of machinery and

division of labour, e.g., agriculture, fruit and vegetable gardening, etc. Bulky articles

like bricks can only be made on a small scale, for it will not pay to carry them over

long distances

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5. Operation of the Law of Diminishing Returns: It happens sometimes that the

expansion of an industry leads to increasing costs and the returns are less than

proportionate. It will not be wise in such cases to expand the business.

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 CONCLUSION

In the clockwise direction, the blades push air up. This is key to facilitating a more

comfortable room in the heating season. That’s because, when the blades push air

down, they create the wind-chill effect, helping to facilitate evaporation. If you leave

the setting in this mode, you will definitely feel cooler!

In the heating mode, however, the blades push air up, helping the fan to better

distribute heat. Here’s how:

 As the blades move, they draw in air from around the room and push it up toward the

ceiling.

 The force of the air pushes the air at the top of the room toward the walls, at the outer

edges.

 Then, the air moves back down to the ground.

 Since air at the top of a room is warmer, the entire room starts to feel warmer as the

air is pushed back down to the bottom of the room.

 The process repeats.

 The room gets warmer and warmer.

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