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It all begins with an Idea
The overriding reason for anyone to think of establishing a MSME unit can be summarised in one word - opportunity. An opportunity to provide a product or service, which can generate sufficient surplus. This is all the more true if one is a believer in the maxim, "Small is Beautiful".
However, ideas need to be
filtered through a multi-layer sieve. This model is shown in the
1 Technology and Machinery
1 Arranging Finance
1 Unit Development
1 E M Filling
1 Quality Certification
Once the ideas are screened
and a viable business opportunity emerges the project has to be
conceptualised in all its dimensions. The 4 Ps of Project Conception is:
- PRODUCT (Shape, Size and Nature)
- PROCESS (Technology to produce the product)
- PLACE (Location of Plant)
- PARTNER (Technological of Financial Collaborator)
Making a Product Choice
In a project
conceptualisation stage while making a product choice following factors
are related to product need to be considered:
Some other factors that
one should consider while finalising the product choice are:
Market information is also important for product selection. Products, which are likely to have a number of players in the market, are best avoided. Some such products in the recent past have been plastic footwear, audio cassettes, disposable gloves and bulk drugs.
In case the entrepreneur
is looking for a product, which has export potential, the following
additional questions need to be asked:
The development of
export-product portfolio can be done by considering 4 parameters viz.
Analysis can be conducted using this four dimensional model. The obvious choice is a product which scores a high rating on first two parameters and low rating on last two parameters.
EXIM (Export Import Bank
of India) Bank has also developed an excellent model to conduct the
export-product portfolio analysis based on three parameters viz.
This analysis gives rise to product groups with high potential or low potential.
With regard to special packaging requirements one has to be careful about laws of the country one is exporting to. For instance, while exporting to Australia, wooden-packaging cannot be done.
Product adaptations for country's specific needs look into things like whether voltage supply is 220V or 110V for electric appliances and for automobiles whether left-hand drive or right-hand drive is appropriate.