Small Scale Industries

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Small Scale Industries

By | March 2011
Page 1 of 10
HOW TO START A SMALL SCALE INDUSTRY

The steps involved in starting a small-scale industry are:-
• Conduct Market Survey and Study the products as regards their demand in the market. Check whether it is a seasonal product or it has demand throught the year 1. Study similar products available in the market that can be probable competitors. Analyze them as regards their utility, quality and cost. 2. Find whether the product can be exported.

3. Explore the possibility whether some product can be manufactured in collaboration with a foreign country. This provides readymade technical know how and save a lot of time and money otherwise wasted in developing a suitable method of manufacture. 4. Decide the product that you are going to manufacture, on the basis of:- o Market Survey

o Financial implication involved
o Technical know how available
o Experience in the line, etc
• Select a proper site for locating the unit.
• Take a building for factory on hire or construct your own factory building. • Get yourself conversant with the rules and other information available from small-scale industries, Ministry of Industry, New Delhi • Prepare a scheme in detail to manufacture the selected product such a scheme should include the requirement of and the approximate cost of: 1. Land and building

2. Machinery, tools and other equipment
3. Direct  labour
4. Indirect labour
5. Direct material cost
6. Indirect material cost
7. Selling and distribution overheads
8. Working Capital for a unit time
9. Depreciation
10. Total production cost per unit time
11. Percentage of profit
• The scheme after it has been prepared is sent, for approval to the Directorate of Industries of the particular state. • A small scale unit has to get itself registered with the Directorate of industries in order to avail various facilities provided by the government, such as:- 1....
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