what is the basic need of small scale industry?
Answers
Answer:
Ok …
So lets begin,
there are basically 4 things(factors) and trust me these are very basic( you must have read them in your school books if not nevermind) …
These are-
1.land
2.labour
3.capital
4. Entrepreneur
Now , capital(as you said) and entrepreneur (businessman or in this case you) are done …
Whats left is land and labour
Now i am assuming that as you have prepared a business plan so you must have also included the information about these..that means ..the place where you will operate the business and the people who will operate and their salaries. .
So now I will tell you some more things other than this
Connections
Number of people you know in the industry
Connections with existing players
Connections with govt. Officials related to industry ( this is very helpfull in long run)
Connections with the newspaper agencies
Product ( most imp. The more you make the product better more your sales increase )
Market (place you will sell)
Will you sell domistic or export?
If domestic then which state(s) or region or production for particular monopolies or companies or particular segment of society or for further production of other products ( likewise many more questions need to figured)
If export then which country(s) ..will it will be for retail or will further go for more production that means acting as a outsourced company for a big company …will you export only on surplus or will do it more commonly. ..the revenue and the target market gets what it wants or are there variations to be made in product for specific market in a specific country
Competitors
Number of compititors
Their promotional stratergy
Their product exclusive feature that buyers like
Their market share
There production capacity etc etc
Efficiency ( related to production)
Effectiveness (related to production)
Cost of production ( varies with reference of 4th and 5th point)
If the effectiveness and effeciency and market handling is good then cost of production will be less
One more factor comes here that the raw material will be procured or will be made..this affects the overall cost
Channels of distribution
Whether you will directly sell to buyers or first to wholesalers then retailers
Ties
Ties with govt.
With other companies …
Cartels
Support and assistance [financial( could be loan or funding) or recourse ]
Stategy or plan( bizz plan should have the strategy for atleast 2 and a half years)
Employees
right people are to be employed for the right job… is of great importance as a person capable but given the duty which is out off his skills will only lead to watage of time and money and even slow the production speed and thereby increasing cost ..
Managers - appointing managers will be very imp as this will save your energy from less productive and time consuming internal working.
Note : these are my own original thoughts and learning
Answer:
In small industries there are no big machineries to produce products
So men power i.e need of people is the basic need in small scale industry