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1 Starting Up A Industrial Unit

The document outlines 12 steps for starting an industrial unit, including deciding to go into business, analyzing strengths and weaknesses, selecting a product, conducting market surveys, choosing a business structure, finding a location, acquiring machinery and equipment, creating a project report, obtaining financing, securing power connections, installing machinery, and recruiting manpower.

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neha Mistry
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362 views11 pages

1 Starting Up A Industrial Unit

The document outlines 12 steps for starting an industrial unit, including deciding to go into business, analyzing strengths and weaknesses, selecting a product, conducting market surveys, choosing a business structure, finding a location, acquiring machinery and equipment, creating a project report, obtaining financing, securing power connections, installing machinery, and recruiting manpower.

Uploaded by

neha Mistry
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Starting an

Industrial Unit…
The steps in setting up a small
industrial enterprise are as follows:

Step # 1. Deciding to go into Business:

This is the most crucial decision a youth has to take, shunning


wage-employment and opting for self-
employment/entrepreneurship.

Step # 2. Analyzing
Strengths/Weaknesses:

Having decided to become an


entrepreneur, the young person has
to analyze his/her
strengths/weaknesses. This will
enable him/her to know what type
and size of business would be most
suitable. This will vary from person
to person.
Step # 3. Product
Selection:
The next step is to decide what
business to venture into, the
product or range of products
that shall be taken up for
manufacture and in what
quantity. The level of activity
will help in deciding size of
business and form of
ownership. One could generate
a number of project ideas
through environmental
scanning, short list a few items,
closely examine each one of
these and zero on to a final
products.
Step # 4. Market
Survey:
It is easy to manufacture an
item but difficult to sell. So it
is prudent to survey the
market before embarking
upon production and satisfy
the product chosen is in
demand changes in product
design required, determining
demand-supply gap, extent of
competition, your potential
share of the market, pricing
and distribution policy, etc.
Step # 5. Form of
Ownership:
A firm can be constituted as
proprietorship, limited
company, (public or private)
co-operative society, etc. This
will depend upon the type
purpose and size of your
business. One may also
decide on the form of
ownership based on
resources on hand or from
the point of saving on taxes.
Step # 6. Location:
The next step will be to decide on the place where
the unit is to be located. Will it be hired or owned?
The size of plot and covered and the last one
identified. This will be useful in determining the
machinery and equipment to be installed.

Step # 7. Machinery and Equipment:

Having chosen the technology, the machinery and


equipment required for manufacturing the chosen
product/s have to be decided, suppliers identified and
then costs estimated. One may have to plan well in
advance for machinery and equipment especially if it has
to be procured from outside the town, state or country
that is, have to be imported.
Step # 8. Project
Report:
The economic viability and
technical feasibility of the
product selected has to be
established through a
project report. A project
report that may now be
prepared will be helpful in
formulating the financial,
production, marketing and
management plans. It will
also be useful in obtaining
finance, shed, power,
registration, raw material
quotas, etc.
Step # 9. Finance:

Money is no problem for starting


scale industry. But an entrepreneur
has to take certain steps and follow
specific procedures to obtain it. A
number of financial agencies will
give loans on concessional terms.
Under TRYSEM and SEEUY
schemes, entrepreneurs are also
eligible for subsidies which obviate
the need for margin money.
Step # 10. Power
Connection:

The site chosen should


either have adequate
power connection or
this should be arranged
now.

Step # 11. Installation of Machinery:


Having arranged finance, work shed, power, etc. the next step
is to procure the machinery and begins its installation.
Step # 12.
Recruitment of
Manpower:
Once machines are installed
manpower will be required to
run them. So the quantum and
type (skilled, semi-skilled,
unskilled, administrative, etc.)
of labor have to be determined,
sources of getting desired labor
identified and labor/staff
recruited. Possibly, the labor
has to be trained either at the
entrepreneur’s premises or in a
training establishment.
Thank You…

Presented By,
Aman Chakradhari

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