The Slogan of Vocal for Local is given by Our PM during his address to the nation after lockdown period. His emphasis is on setting of new manufacturing units, service providing agencies and promotion of existing manufacturing and services providing units. As told by him, ‘Local is not our need, its our responsibility‘. If we want to increase our exports and compete with developed country like China, America then we have to focus on our local brands. Our products and their quality must be world class.

All world class brands of today, were local brands of there country at the starting phase of their business cycle but due to their good product quality and promotion strategies they become global brand from local brand. Our PM emphasis that we must Vocal for our local products because during lockdown period when foreign trade is almost closed then our local retailers are open to help us. We must be loyal to them and if their product/service quality is good then we must promote them by word of mouth and through Social Media etc. In this article we will discuss about how to start your business and how can you grow it with passage of time.

One common misconception is in the mind our youngsters who want to start their business is that they must form a private limited/Limited company at the starting phase of business and its not cost friendly at the initial stage. Please note that, it is not mandatory at the initial stage of your business that you must registered a private Limited/Limited company to test your business idea whether it is workable in the market or not.  You can start your business as: –

  • Proprietorship Firm
  • Partnership Firm/LLP

Which are cost friendly at initial stage of business and compliance part is also very low. After testing your business idea, you can incorporate a private Limited/Limited company so that you can get funding from national/ International investors.

In my point of view, India is a very high populated country and if you are able to establish a manufacturing unit producing good quality product and that product is also marketed with different marketing strategies then you have an immense potential of growth. Now, a question comes in our mind that establishing a manufacturing unit requires lot of capital investment. Please note that you can test your product and marketing strategies by establishing a single machine. Government of India is also providing loan facilities to manufacturing units through Mudra Loan etc. To help MSME Sector, definition of MSME Enterprises has been revised from 01.07.2020

Classify Micro Small Medium
Manufacturing Enterprises and Enterprises rendering Services

 

Investment in Plant and Machinery or Equipment:
Not more than INR 1 cr and Annual Turnover; not more than INR 5 cr
Investment in Plant and Machinery or Equipment:
Not more than INR 10 cr and Annual Turnover; not more than INR 50 cr
Investment in Plant and Machinery or Equipment:
Not more than INR 50 cr and Annual Turnover; not more than INR 250 cr

Note: To Avail benefits of MSME Scheme the Enterprises/Firm must have Udyam Registration

The government of India has launched many schemes to boost local manufacturing units and services providing agencies. Some of scheme are as follows:

1. Prime Minister Employment Generation Programme and other Credit Support Schemes

2. Technology Upgradation and Quality Certification

3. Marketing Promotion Scheme

4. Entrepreneurship and Skill Development Programme

5. Infrastructure Development Programme

Essential Documents to avail benefits under above Schemes

1. Vision Document

2. Basic KYC of Owner/Constitution Certificate

3. GST Registration (If Applicable)

4. Detailed Project Report

5. Prior Experience in industry where you want to set up your organisation will be given extra weightage

6. Minimum Education qualification which varies from project to project and scheme to scheme

The business can be started with the help of government funding or with own capital but success of business depends on many factors, some of which are as follows:

Demand of your proposed product in market – Before starting your new business, the entrepreneur must do SWOT analysis of its business in current and future scenario. Some businesses are green for a limited period of time like Mask and sanitizer business boost during Corona period but the same will lose its speed when corona is over, so we must understand the future of our business also.

Pricing – As explained above, India has a very high market to sell our product/ service but we must understand that, Indians are very price sensitive, so we must price our product according the rates of our competitors and what we are extra giving to our customers.

Maintenance of Demand and Supply Chain –Every business runs on many pillars, so we must take care of those pillars while starting our business, like if we start packed food manufacturing plant then we must have a strong raw material supply chain as well as a strong distribution channel for packed food. As the product is of Perishable nature, a small failure of supply and distribution channel, whole company reputation is at stake.

**********

Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s person experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers. 

The Author can be reached at mail –[email protected] and Mobile/Whatsapp – 9911303737/ 9716118384.

Author Bio

Qualification: CA in Practice
Company: Shiv Kumar Sharma & Associates
Location: Delhi, Delhi, India
Member Since: 03 Dec 2018 | Total Posts: 63
My Self CA. Shiv Kumar Sharma. I am a member of "The Institute of Chartered Accountants of India" since 2012. I have Qualified my B.Com (H) in 2010 And Cleared CS- Executive Exam in June 2013. Currently, I am in Practice and dealing in Direct and Indirect taxation along with ROC Compliances. View Full Profile

My Published Posts

More Under Corporate Law

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

April 2021
M T W T F S S
 1234
567891011
12131415161718
19202122232425
2627282930