Being your own master

THE FIELD of self-employment and entrepreneurship has become a viable career option in the recent times. The basic difference between self-employment and entrepreneurship is that, self- employment is usually a one person venture operating from home, like consultants, programmers, graphic designers, freelance content writers, web designers and copywriters.

Various Government organisations provide financial assistance to small scale entrepreneurs. Institutions like Small Industries Service Institutes, Small Industries Development Bank of India, Small Industries Development Organisations are dedicated to providing initial seed capital to entrepreneurs. Non-government Associations and private networks like, Self-Employed Women's Association (SEWA) offer the much needed additional support.

Small office Home Office (SOHO):

Enterprising men and women have done quite well for themselves working right from their home. Though self-employment might sound appealing it requires tremendous amount of discipline, confidence, and effective time management.

First and foremost you will have to inquire about the zoning regulations from the local authorities for constructing extra rooms for the offices. Then buy or lease and set up the equipment you need for the venture. Most importantly since you are working from home you have to establish a very good networking system to get in touch with people who may offer you assignments. Finally, one should possess the persistence to regularly follow-up payments which are due.

Entrepreneurship, wherein you set up a concern, employ and manage a small workforce and resources and turn it into a profitable venture requires more planning, research and effective implementation.

Can anybody start a small business?

Yes, provided you know what you are getting into and provided you feel comfortable with your state of knowledge about the business you have chosen. A logical first step for the undecided is to list potential areas of personal background, special training, educational and job experience, and special interests that could be developed into a business.

You should also have a strong drive to succeed even when the hours get long and the decisions difficult. All types of people make it in small businesses and all types sometimes fail. It is a choice that should be made only after serious study, self- examination, and counseling. Detailed preparation and a long term planning is your key to success.

Are there any courses that equip one to start a small business?

Basic entrepreneurship courses are conducted in certain colleges at the degree level. Even private banks conduct entrepreneurship development courses for those interested. These courses mainly teach about the research tools necessary to do the groundwork, basics of cash flow management and financing, government regulations, writing an effective business plan, to income tax record keeping.

One can also approach the entrepreneurship development cell of private banks for monetary and advisory assistance.

Pre-requisites to venture

into this field.

The perfect idea

Often the simplest of ideas which when realistically developed can be converted into profits. From pickles and papads to radiator caps to software programming, it all depends on the ingeniousness of the entrepreneur. Apart from the usual manufacturing units, service- oriented ventures ranging from providing house-help, gardening services, and pet care are fields that have not yet been fully explored.

Finances

You will need to maintain two different capitals. One to pay for the things you need just to get your new business started, the other to pay your operating costs until your business breaks- even . Make an estimate of all the things you will need to just get started. This might include equipment, tools, inventory, fixtures, lease costs, office supplies, vehicles, signs, pre- opening advertising, fees and permits.

Writing the business plan

The business plan is nothing but organising your dream scheme into a blueprint for easy execution.

The finished written plan is an operational tool which, when properly used, will help you manage your business and work toward its success.

Firm eye on competition

No business, big or small operates in a vacuum. Get to know and respect the competition. Target your marketing plans. Identify direct competitors (both in terms of geography and product lines), and those who are similar or marginally comparative.

Market analysis

For a small business to be successful the owner must know the market. Analysing the market is a way to gather facts about potential customers and to determine the demand for your product or service. The more information you gather the greater your chances of capturing a segment of the market.

Execution

After writing the business plan comes the stage of execution. Detailed planning can sometimes be severely upset by practical problems, which can plague the project. A day to day schedule, listing the tasks to be completed and pending jobs, which need follow-ups, will help in completing the process of establishing the production line.

Staffing

Small businesses need a highly skilled and dedicated workforce. As each business is geared towards producing one product or providing a service, each and every worker has to be a specialist in the area.

As the number of employees is limited it is important that the workers are highly motivated to perform to their full potential to avoid incurring losses.

Usually diploma students with specific areas of specialisation and work experience, who can start working from day one, are preferred.

Time management

During the first year of operation, continue to chart, post and check off tasks on a daily, weekly and monthly basis. It is important to keep both a planning and an operating log. These tools will help avoid oversights and provide vital information when memory fails.

Promotion and Advertising

With the marketing strategy and clear objectives outlined, use advertising to get the message out to customers. Try to reach the largest number of people with the money allocated to advertising and promotion. This may be accomplished by using several different methods of advertising. Remember to be creative and implement ideas.

Government regulations

The entrepreneur has to be well versed in the government rules and regulations governing small business concerns. Registering the concern, employing an auditor to maintain monthly accounts, filing income tax returns and submission of profit and loss statements are some of the basic regulations to be followed. They differ according to the type of business, location and size of the manufacturing unit.

A razor sharp mind , a visionary outlook, and a knack to weather stormy situations goes a long way in making any business venture a resounding success.

MALINI SURYANARAYANAN

malini-suryanarayananKyahoo.com

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Check list

Remember: When you start a commercial enterprise, delays and snags are inevitable. Sometimes it may take years to perfect the operations, right from buying of raw materials to pricing and selling. One needs to be involved in each and every aspect of the business. An important point to note is that if you are operating from home, electricity and water charges especially, will be hiked, as your home would be taken as a commercial establishment.

Be aware: You will come across people who will not hesitate to make a fast buck by misleading and cheating you. However, you simply cannot afford to insulate yourself just because there are chances of your being robbed. A cautious lookout is a must.

Change: Being a small entrepreneur you might not be able to weather all the disasters. This is a profession for people who are mentally and physically strong, who can effectively implement their ideas and constantly upgrade their skills.

Prize: You get to be your own boss! Responsible for all the omissions and commissions.

M.S.