Opportunity Description

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Why every one teaching Entrepreneur

• GDP growing a almost double digits.

• 4th strongest economy.
• Disposable income is rising.

• With all these “if not now then when”

• Getting 3M's Right

• MEN
• Money
• Material
( cost leader, Backward calculation procurement of material)
to reduce cost to make a entry. How can remain cost effective
for long time?
 What is a Business Plan
• Entrepreneur is creating a B Plan . It is
presenting his business plan in the manner in
which investor is understand it.

• Projection is done monthly for initial months

and after a year than qtrly. As the revenues
are very in uncertain part but expenses….
 Network
• This can create a entry barrier ( franchise etc)
 Why Business fail
• 1. You start your business for the wrong
reasons.
Would the sole reason you would be starting your own business be that you would want to
make a lot of money?
Do you think that if you had your own business that you'd have more time with your family?
Or maybe that you wouldn't have to answer to anyone else?
 But instead you should..
• You have a passion and love for what you'll be doing, and strongly believe --
based on educated study and investigation -- that your product or service would
fulfill a real need in the marketplace.

• You are physically fit and possess the needed mental stamina to withstand
potential challenges.

• You have drive, determination, patience and a positive attitude. When others
throw in the towel, you are more determined than ever.

• Failures don't defeat you. You learn from your mistakes, and use these lessons
to succeed the next time around.
 2. Poor Management

• New business owners frequently lack relevant business and management expertise
in areas such as finance, purchasing, selling, production, and hiring and managing
employees.
• Unless they recognize what they don't do well, and seek help, business owners
may soon face disaster.
• They must also be educated and alert to fraud, and put into place measures to
avoid it.
 But should do…
• Care must be taken to regularly study, organize, plan and control all activities of its
operations.
• This includes the continuing study of market research and customer data.
• A successful manager is also a good leader who creates a work climate that
encourages productivity.
• He or she has a skill at hiring competent people, training them and is able to
delegate.
• A good leader is also skilled at strategic thinking, able to make a vision a reality, and
able to confront change, make transitions, and envision new possibilities for the
future.
 3. Insufficient Capital

• Business owners underestimate how much money is needed and they are forced
to close before they even have had a fair chance to succeed. They also may have
an unrealistic expectation of incoming revenues from sales.

• It is important to take into consideration that many businesses take a year or two
to get going. This means you will need enough funds to cover all costs until sales
can eventually pay for these costs.
 4. Location, Location, Location

A bad location could spell disaster to even the best-managed enterprise.

• Some factors to consider:
• Where your customers are
• Traffic, accessibility, parking and lighting
• Location of competitors
• Condition and safety of building
• Local incentive programs for business start-ups in specific targeted areas
• The history, community flavor and receptiveness to a new business at a
prospective site
 5. Lack of Planning

Many small businesses fail because of fundamental shortcomings in their business planning. It must be realistic and based on

accurate, current information and educated projections for the future.

•Components may include:

•Description of the business, vision, goals, and keys to success

•Work force needs

•Potential problems and solutions

•Financial: capital equipment and supply list, balance sheet, income statement and cash flow analysis, sales and expense

forecast

•Analysis of competition

•Marketing, advertising and promotional activities

•Budgeting and managing company growth

•In addition, most bankers request a business plan if you are seeking to secure addition capital for your company.
 6. Overexpansion

• http://www.businessknowhow.com/startup/b
usiness-failure.htm
• http://www.businesswealth.com.au/business/
starting/advice/failure.asp
 What is more important
• Execution is more important than plan
 What to do?
• List some reason for which a business can fail?
( take your own example).

Now list some100 reasons for which it may fail,

then find solution to above. Now you have a
very strong understanding to the plan.
 Process Selection
• Whether process requires very high level of skilled workers or complex
machines?
•
Whether process requires large quantities of water and/or power?
•
Whether any process or product patent needs to be honored while utilizing
the selected process technology.
•
Any special pollution or environmental regulations.
•
Finally, the appropriateness to the Indian environment and conditions.
Machinery and equipment
 Marketing
• Who are your customers? Define your target market(s).
• Are your markets growing? Steady? Declining?

• Is your market share growing? Steady? Declining?

• If a franchise, how is your market segmented?
• Are your markets large enough to expand?

• How will you attract, hold, increase your market share? If a franchise,
will the franchiser provide assistance in this area? Based on the
franchiser’s strategy? How will you promote your sales?
• What pricing strategy have you devised?
 Financial
No MSME unit can take off without monetary support. This need for finance can be classified into following
types:
• Long and medium term loans
• Short term or working capital requirements
• Risk Capital
• Seed Capital/Marginal Money
• Bridge loans

Financial assistance in India for MSME units is available from a variety of institutions. The important ones
are
SIDBI: Small Industries Development Bank of India (refinance and direct lending)

SFCs: State level Financial Corporation e.g. Delhi Financial Corporation.

NSIC: National Micro, Small and Medium Enterprises.

Micro, Small and Medium Enterprises of various states.

Commercial/Co-operative Banks.
DIC: District Industry Centre.
 Cont..
For loans from financial institutions and commercial banks a formal application needs to be
made. The details of documentation that need to be provided with the loan application are
shown here.
• Documentation for Loan Application

Balance Sheet and Profit Loss Statement for last three consecutive years of firms owned by
promoters

• Income Tax Assessment Certificates of Partners/Directors

• Proof of Possession of Land/Building

• Architects estimate for construction cost

• Partnership deed/Memorandum and Articles of Associations of Company.

• Project Report

• Budgetary Quotations of Plant and Machinery

Acceptable loss
 To calculate funds required
• http://www.businessknowhow.com/startup/st
artup.htm