It all begins with an Idea
The overriding reason for anyone to think of establishing a Small Scale Industries (SSI) / Micro, Small and Medium Enterprises (MSME) unit can be summarized in one word – opportunity.
An opportunity to provide a product or service, which can generate sufficient surplus. This is all the more true if one is a believer in the maxim, “Small is Beautiful“.
However, ideas need to be filtered through a multi-layer sieve. This model is shown in the following flow:
- Does the idea fire up your motivation?
- Is it a viable business proposition in your area?
- Does it match the needs of your clientele?
- Check it out with basic market research
- Test it out at market place
- Consult with the experts
- Look out for competition in the field
- Is it a sunrise industry?
- Your business opportunity
- Project conceptualization
Once the ideas are screened and a viable business opportunity emerges the project has to be conceptualized in all its dimensions. The 4 Ps of Project Conception is:
- PRODUCT (Shape, Size and Nature)
- PROCESS (Technology to produce the product)
- PLACE (Location of Plant)
- PARTNER (Technological or Financial Collaborator)
Making a Product Choice
In a project conceptualization stage while making a product choice following factors are related to product need to be considered:
– Product Line – Depth, Width
– Packaging
– Branding
– Warranties
– After Sales Service
Some other factors that one should consider while finalizing the product choice are:
– Ease of availability of raw-material
– Process Technology
– Accessibility to the market
– Incentive and support from Government
Market information is also important for product selection. Products, which are likely to have a number of players in the market, are best avoided. Some such products in the recent past have been plastic footwear, audio cassettes, disposable gloves and bulk drugs.
EXPORT ORIENTED PRODUCT
In case the entrepreneur is looking for a product, which has export potential, the following additional questions need to be asked:
– What should be the contents of export-product portfolio?
– What are the special requirements for packaging if one has to export the products?
– What product adaptations are needed to be made for exporting a product to a specific country?
– Are any WTO conditionals involved e.g. “child labour free”, ISO 9000 certified, GMP followed etc.
The development of export-product portfolio can be done by considering 4 parameters viz :
- External demand conditions
- Internal supply capability
- Complexity of marketing tasks
- Amount of investment required to penetrate the market
Analysis can be conducted using this four dimensional model. The obvious choice is a product which scores a high rating on first two parameters and low rating on last two parameters.
It has now become important to understand the implications of the various agreements which form part of .
Once the product is finalized, choices of process technology emerge.
Now here two options are available.
– If you are technically capable and scout for the available technology and are in a position to select yourself the best available technology.
– Fine, otherwise, it is prudent to hire services of an expert who can guide you and assist you in selecting the best, cost effective and state – of -the art technology for a product in question.
Wish you good luck in your journey to upgrade :
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Your business from trading to manufacturing Industry
or
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From being a service professional to a self employed SSI / MSME Industrialist.
