24 steps to start an ssi

8/3/2019 24 Steps to Start an SSI

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Steps in launching an entrepreneual venture-

1. Decision to be self employed:

- Think positively

- Self confidence

- Goal setting.

- Initiative- Courage

- Determination

What to manufacture?

Analyzing strengths and weakness-

Training-

Skills and technical

• Environmental scanning-The method of granting consent under water and airpollution to SSI units has been simplified. Except for 17 critically polluting

sectors, in all other cases SSI units will merely have to file an application and

obtain an acknowledgement which will serve the purpose of consent.

• Product selection

Selection of the product based on market survey. Making a Product Choice

In a project conceptualization stage while making a product choices 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 choiceare:

- Ease of availability of raw-material

- Process Technology

- Accessibility to the market

- Incentive and support from Government



Market survey-

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, disposablegloves and bulk drugs.

Forms of ownership- Form of ownership

- Proprietary concern

- Partnership

- Limited company

- Cooperative society

Location-- Nearness to market and nearness to raw materials.

- Early availability of transport facility at cheaper rates.- Availability of skilled workers at cheaper rates.

- Incentives/concessions for industrially backward areas

• Technology-

• Machinery and equipment- Availability industrial sheds and with minimum

investment

• Project report-

- Technical feasibility.

- Economic viability.

- Total cost of the project-fixed as well as working capital

Finance- (for fixed assets & working capital)

Whom to approach - Bank, private financial Institutions, Govt. agencies, UPFC,

etc.Types of scheme.

Provisional Registration- Whom to approach-depending upon the location of the

factory.

Power connection / water supply-

Among the utilities of prime importance are power and water. In many cases getting

power connection causes delay in setting up of plant. Therefore it is imperative to

commence work on these aspects with diligent follow up. Power connections are

generally of either LT (Low Tension) or HT (High-tension) type. If connected load is



up to 75 HP, LT connection is provided. For connected loads of 130 HP or higher

only HT connection is provided.

A formal application needs to be made in a specified form to the state electricity

board. An electrical inspector is deputed for evaluation of application to factory

site, after which the load is sanctioned. In areas of power shortage, it is advisableto augment the power supply with a captive generating set.

Water connection is also obtained likewise by applying in advance in formal forms.

The water supply can be augmented by installation of tube well.

Installation of machinery.

NSIC provides indigenous and imported machinery to MSMEs on hire purchase

basis. The rate of earnest to be paid varies from 15 to 30%. Full hire purchase

value is pay able in 13 installments.

Recruitment of personnel: -

- Well qualified - skilled & unskilled

- Well experienced skilled & unskilled

- Minimum wage rate prevalent

Procurement of raw materials: -

- Minimum stock

- Easily available

- Find substitutes- Lower rates

Production:- Know the installed capacity.

- Less rejections

- Quality control & testing

Marketing :-

- Advertisement and publicity

- Channel of distribution

- After sales service, if required- Feed back from customer.

Quality assurance

Permanent registration

Market research-



Periodical monitoring and evaluation in terms not only for market survey but also

production, quality management and profitability helps in knowing where the firm

stands in comparison to performance envisaged in the project report.

24 steps to start an ssi

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