Setting up of a Small Business Enterprise

A Strong entrepreneur is the most vital element of every successful project.

Steps
I. Selection of a Project Product or Service Selection Location Selection Project feasibility study Business plan preparation, and Prepare project profile

2. Decide on the Constitution

Sole proprietorship Partnership Corporation/Limited Company Co-operative Franchising

3. Registration
Obtain SSI registration Provisional Registration Certificate(PRC) De-registration

4. Clearances from Specific Departments

Agricultural land Conversion Urban Land Ceiling Clearance Factories Act,1948 Building plan approval Pollution control board clearances Central excise registration BIS, sales tax registration

5. Arrange for Land/Shed

Industrial shed Application Formalities

6. Arrange for Plant and Machinery

Direct Purchase NISC- Hire purchase scheme Process selection Raw Materials Machinery and Equipments Period of repayment Gestation Period

7.Arrange for Infrastructure

Land and Construction of Buildings Getting Utility Connections

8. Prepare Project Report

Executive Summary Company details Operational details Project details Project Cost Means of finance Profitability and risk analysis Employment generation-Direct/Indirect Conclusion

9.Apply to obtain Finance

Sources of funds: Share capital Direct accruals Deposits-own/public Short term earnings Long term loans Bridge loans, and Working Capital loans like cash credit

Means of Finance
Own Equity Internal accruals Inter Corporate deposits/investment SFCs OFIs Banks Other borrowings like,ECS,CP,FDI, etc State Subsidy and seed capital, Lease Finance

11. Implement the Project and Obtain Final Clearances

Order for machinery Recruit personnel Arrange for raw materials Marketing Erection and Commissioning Obtain final Clearances etc.,