Training for potential entrepreneurs

Training for potential entrepreneurs – a series

            Training is good for those who are willing to opt for entrepreneurial career; who have aspiration to be on their own, who has thought for entrepreneurship & taking initiative and acting on it. Otherwise it remains one more educational course.

            Training courses are available for almost every section of the society. Livelihood activity training for below poverty line men/women; self employment training for educated unemployed youth, vocational training or entrepreneurship training for scheduled class, tribes and general class, programs for physically challenged people, similarly both training for women, ex-servicemen, entrepreneurship development training for potential entrepreneurs; management development programs, seminar & workshops on different themes for existing entrepreneurs are being conducted in the training market.

Even tailor made courses are available for college students, VRS/CRS/NRI people. So it is up to individual to think which course is suitable to attend.

If you are sharp even to generate business ideas, visit & collect information, develop network, influence officials, get the work done from others, implement your own ideas, then you may not attend any course. But the training course will provide you such information, skills & attitude in short span of time, in less cost, with less effort.

Normally there are three kind of training programs i) awareness program, ii) vocational program and iii) entrepreneurship development programs (EDPs). Duration of such programs is 3 days to min to 2 weeks to 12 weeks respectively.

There are number of Govt. organizations (GOs) well as NGOs, educational institutions, who organize such training programs. Organization like DIC, CEDs, TCOs, govt. agencies MSME, NIESBUD, NSIC, NISIET, EDII and other state organizes many kinds of training programs in all the parts & corners of the country. 

Special training programs like Central Footwear Training Institute provide training for footwear, Tools Room & Tool Design Institutes provide training in Engineering Industry; Coir board provide training on coir industry. Food technology training provided by CFTRI; likewise other technical training is provided by various institutions of Centre & State Government.

Nowadays many educational institutions have started diploma & degree courses in entrepreneurship. Even management institutions have MBA in entrepreneurship.

The machinery suppliers, machinery manufacturers, equipment providers, product manufactures are also a source of training providers. They are in the sales of manufactures business. For example: Garware Polymers are the manufactures of sun glass films they provide training for small vendors of pasting glass films. Machinery installation & commissioning is the prime responsibility of machinery suppliers; same is the case with erection of machinery.        

project report

project report – a series

·        Details about project report

            The Project Report is an important document; it is a proposal of proposed plan or business activity. The project report contains detailed information about following aspects.

1)     – Identity of an Entrepreneur with detailed address.

– Name of the Enterprise with detailed address

– Type of Enterprise (Proprietary/Partnership/Limited Company, etc)

–        Entrepreneurs background

–        Details of services or products.

–        About availability of market

–        Product process

–        About the competition

–        About availability of raw materials (Indigenous/Imported)

2)     Plan : Information about capital requirement

a)     Land and building area details (Owned/Rental), The Price or Rent details

b)     Machinery details. It includes the information about:

i)                   Title and description of machine

ii)                Indigenous/Imported

iii)              Machinery details with production capacity

iv)              Power required

v)                 Price, etc total of all above

You also have to consider –

i)                   If the machinery is imported the different taxes

ii)                Octroi

iii)              Transportation charges

iv)              Machinery erection/installation expenses. Total of all above         

c)     Testing equipments

d)     Other financial investments like

i)                   Contingency expenses

ii)                Power connection

iii)              Jigs & fixture

iv)              Office equipment & furniture etc

e)     Total fixed capital expenditure (a+b+c+d)

f)      Expenses on manpower

i)                   Office staff

ii)                Technical staff. Total of per month salaries

g)     Raw material details. Here one has to calculate requirement of raw materials. It includes:

i)                   Whether it is indigenous or imported

ii)                Requirement for one month.

iii)              Weight and numbers

iv)              Price; Total of all above points 

h)     Other expenses such as:

i)                   Power

ii)                Promotion & travelling

iii)              Communication & stationery

iv)              others

i)       Total working expenditure (f+g+h)

j)       Working capital requirement for 3 month (Total working expenditure X 3)

k)     Total capital investment, i.e.

–        Fixed capital (E)

–        Working capital (J) Total

l)       Arrangement of capital investment.

Here the fixed capital & working capital is divided into

i)                   Own investment

ii)                Loan from the financial institution

iii)  Working capital and total of the same; (It would be divided as per the scheme offered by the institutions)

m)   Annual sales; it includes,

i)                   Production of different services/products

ii)                Total production

iii)              Rate

iv)              Total sales price – Total of the same

n)     Annual production expenses; it includes,

i)                   Annual working expenditure (i X 12)

ii)                Repairs & maintenance (3 & ½ %)

iii)              Depreciation on machinery (25%)

iv)              Depreciation on building (10%)

v)                 Interests of investment……Total of all.    

o)      Total profit i.e. Annual sales – Annual production expenses (m-n)

p)     Annual taxes

q)     Net profit i.e. Total profit – taxes (o-q)

r)      Addresses of Machinery suppliers

s)      Addresses of Raw material suppliers

t)       Signature of entrepreneur

Preparation of project report requires knowledge about Calculations, Break Event Point (BEP) analysis, Ratio analysis like Return on Investment (ROI), etc. One has to learn, read and write his/her own project report. It is always better to understand & know your project well.

·         Availability of standard profiles/pro forma for preparation of project report.

The model project profiles are available with CEDs, TCOs, Banks, MSME, DIC etc organizations. One may also get blank pro forma of the reports form financial institutions, CEDs and TCOs. However, the available project profiles have to be recast in accordance with specific needs of the entrepreneurs and the current prices of inputs. 

·         Support agencies to prepare project report.

Agencies namely Maharashtra Industrial & Technical Consultancy Organization (MITCON); organizations registered with MSME under RGUMI Project in the States, Chartered Accountants, DIC, SFCs, NSIC, MSME institutions also support to prepare projects.

·        Support agencies for selection of production process & equipments.

Micro Small and Medium Enterprises Development Institute; Design and Development Centres like MSME Technology Development Center/Tool rooms; R&D agencies like NRDC, CSIR, Regional Research Laboratories; TCO’s, NSIC are the support agencies, in this regard.