Establishment of a small business and successfully running it is definitely by no means a small achievement. It is a commendable achievement as entrepreneurs are the backbones of a country’s economy and its growth. Proper planning and understanding the significance of critical factors and determinants affecting a small business paves way for the smooth functioning of your enterprise.
What are the prerequisites for running a small business?Any plan or idea to be transformed into a product or a service needs to be categorically put into experimentation and subject to inquiries.
- Prepare a detailed project report
- With the help of an external expert consultant get it appraised
- Let the product be innovative which has hitherto not hit the market, for instance flying cars
- Plan your geographical area of operations
- Go for a detailed market survey through questionnaires and giving out free samples
- Try to gauge the pulse of your target customers
- Launch your product at the right time
- Plan your marketing strategy regarding price and promotions
Fix up proper capitalization that would meet your financial requirements. Definitely you have to have some working capital of your own and don’t rely solely on bankers for the entire funding. Asset management, fixed capital and working capital management must be absolutely preplanned.
Man power requirements -Right person for the right job and the appropriate number of persons needed to complete a job has to be planned. Their recruitment, selection, training and development forms part of the package.
Most important criterion is the location and layout of your manufacturing facility. It should facilitate easy movement of materials to bring the product out to the market in the shortest possible time. Avoid bottlenecks or try to resolve them for smooth production. As we all know technology feeds on itself and more the delay, more competitors and better products throng the market. Keep in mind the end product should always reach the buyer or the consumer at the right time. Plan your re order level, delivery schedule and lead times in accordance with the orders in hand.
Smooth supply of production inputs, uninterrupted supply of power, copious water supply, the nature of the soil if your product is agro based, proximity to the market, transportation facilities have to be given due importance. Your product has to be compliant in such a way that it should not pollute the environment. So a proper waste disposal management system should be designed right at the start of your operations.
Proper book keeping and maintaining your accounts will please the tax authorities and you create a goodwill for your company and also keeps you in the right track of your credit management policy.
Any product centered around the consumer will be a hit and that is “marketing”. If you plan your success formula from your product that is “selling” that might not always be successful. Your distribution links should be continuous with unbroken links and strong. The kind of self confidence that you exuberate makes you a reliable person and in the long run you become iconic.
Businessmen have trained the customers to expect something new everyday, because such is the power of technology and the competitor force. So it is better to keep yourself updated with the latest technology available in the market. Take your product to your customers in a convincing manner by which it proves to be a win-win situation for both sides, profit making and customer satisfaction for the entrepreneur and buying products the money’s worth and the real benefits of the product for the customer.