Question: Dear Scott, The kind of information and advises you give are excellent. Thanks for your support. Coming to me, I am NRI working in IT field. I have been working in this field for 11 years.
I am fed up with this field. I am thinking of quitting this field in 2, 3 years. I am interested in starting a business in rural area with local people partnership.
I am from Vijayawada, Andhra Pradesh.
I am ready to invest 25 lacks and can raise funds another 10 lakhs. Once my business kicks off, I am expecting the monthly income of at least 70k to 1 lakh initially. I am looking for the business options with the greater expansion possibilities.
As I am planning to quit my job in 2, 3 year, I’ll have sufficient time to plan and do some ground work on my project. Can you give me some advice on this?
Answer: If you have an aptitude for business, it is advisable you veer off early. And that’s because you are young and, I believe, your life’s calling lies in business.
Though your budget is less, it won’t stop you from starting a small manufacturing business unit. If you have a location, you have a big problem off your back. If not you may have to scout for one. Starting the business in a small inexpensive location is the best way out. Look for an used garage or space available in the out-house, if you have one to spare. However, the space needed would depend on the type of manufacturing unit you plan to set-up. If it is a small unit, little space will suffice. With your kind of budget you cannot afford to go for a big manufacturing unit. Next comes choosing the product. There are multitudes of products to choose from. From small plastic items like cans, buckets and mugs to handloom units, you can start all without facing much problem. But before you get into a line, you need to know it like the back of your palm. This may require a bit of running around. From markets to production centers and from prospective clients to government offices, you need to do it all.
As a manufacturer you need to make product that meets the highest possible standard. And to get a footing in the market, you need to sell it with very less profit margin. To outsmart competitors you need to think of some offbeat and effective strategy. Coming out with the right one is where the challenge lies. Moreover, you need to keep changing your marketing tactics to stay afloat. Besides, you need to have a proper growth plan and a flexible sales avenue. When it comes to marketing, you have to do it all by yourself at the onset. Apart from field marketing you need have a plan ready for online marketing as well.
Besides determination and good interpersonal skills you need to know the art of negotiating.. Individuals, investors and retailers will try to wrench as much out of you as possible. So you always need to be on guard.
Starting an import and export business can also be a good option. However, you need to choose your product very carefully. Go for a product about which you have good knowledge. You also need to know the supply market well. Nothing can work better, if you have contacts abroad. Visit your markets to establish contacts through meeting. Though it’s not mandatory, it would help create rapport.
In order to get into export business, you need an export- import license. You can acquire this from the import-export office after meeting their requirements. You also need to refer to Annual Statistics of Foreign trade published by DGCIS, Kolkatta. By studying this you can access the best markets for your business. After choosing a product you need to get RCMC from Export Promotion councils..
Whether you star a manufacturing unit or get into import and export business, it is very important to gather knowledge about the field. The best way out is to join a unit which manufactures products of your choice as an employee and work for a few months to gain first hand experience. Likewise, to start an export business, get yourself employed in an export house to learn the know-how.