MSME II- Semester

Steps in setting Business

-Sumera Naaz
Assistant Professor
Sree Chaitanya PG college
Department of Business Management
Karimnagar

Note:
The material provided is not a comprehensive or an in-depth detail of the topic.
It just covers pointers that would direct a students thinking.
The students are supposed to research more on the topic with the help of the pointers and form
their own notes.
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SUMERA NAAZ

Steps to start a business

1.
2.
3.
4.
5.
6.
7.
8.

Decision to be Self-employed
Analyzing strengths, weaknesses
Availability of own money
Scanning of business environment
Training
Product Selection
Market Survey
Selection of form of
ownership/organisation
9. Technology
10. Machinery and equipment
11. Preparation of Project Report
(Business Plan)
12. Project appraisal
1.
2.
3.
4.
5.
6.
7.
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(a) Economic appraisal

(b) Financial appraisal
(c) Technical appraisal
(d) Management appraisal
(e) Organisational appraisal
(f) Operational appraisal
(g) Market appraisal

13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.

Finance
Provisional Registration
Technical know-how
HT 75 HP
Power and Water Connection LP 130 HP
Installation of machinery
Insurance
Recruitment of manpower
Procurement of raw materials
Production- trial and commercial
Marketing- Test, commercial
Quality AssuranceRequired clearances (pollution
control)
25. Permanent Registration
26. Market Research
27. Monitoring

SUMERA NAAZ

Steps in setting up an enterprise

Project Selection

Product, process, place, partner

Technology and machinery

8 Steps

Arranging Finance

Unit Development
Filing of Entrepreneurs Memorandum

Approvals
Clearances

Quality Certification
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SUMERA NAAZ

Product or Service Selection

1. Background & Experience of Entrepreneurs.
2. Availability of the Right Technology & Know How for the Project.
3. Marketability of the Product / Service.
4. Investment Capacity (i.e., Financial Resources.)
5. Availability of Plant & Machinery, Indigenous or Imported.
6. Availability of Raw Materials.
7. Availability of Proper Infrastructural Facilities Viz., Land / Shed, Power, Water,
Communication, Transport etc.

8. Availability of right kind of Labor Viz., Skilled, Semi Skilled & Unskilled.

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SUMERA NAAZ