Entrepreneurship book pdf class 12


 

Class 12 Entrepreneurship ENTREPRENEURSHIP (Code No. ) 1. Entrepreneurial Opportunities 2. Entrepreneurial Planning 3. Enterprise. CBSE Class XII Entrepreneurship Textbook () - Free ebook download as PDF File .pdf), Text File .txt) or read book online for free. Textbook used in Class. Textbook used in Class XII for CBSE based schools. CBSE Class XII Hospitality terney.info · cbse accountancy class XIi sample terney.info

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Entrepreneurship Book Pdf Class 12

CBSE has issued Entrepreneurship eBook for class 12 in PDF format for free download. The book is designed as per latest syllabus and. Page 12 The teacher divides the class into seven groups (1 for each unit). . Rajesh Marwaha and J. S. Mehandipur in their book “Entrepreneurship and. Entrepreneurship CBSE Class 12 Books pdf available. Get CBSE NCERT TextBooks Class 12 Entrepreneurship. View all topics in 11th CBSE.

Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our User Agreement and Privacy Policy. See our Privacy Policy and User Agreement for details. Published on Sep 19, Entrepreneurial Opportunities 2. Entrepreneurial Planning 3. Enterprise Marketing 4. Enterprise Growth Strategies 5.

Let's take the example of the tutoring business. While you may have a good number of clients, they are all math students. Just as many students will need extra help in other disciplines. Expanding the existing service will only result in increased profits. So thinking about existing product and service can generate a number of ideas to improve them or to provide cheaper substitutes or to bring about a reduction in price. Such a study yields valuable data about trends of supply, demand and consumer preferences.

Market research is any organized effort to gather information about target markets or customers.

It is a very important component of business strategy. The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a Market research is a key factor to maintain competitiveness over competitors.

Market research provides important information to identify and analyze the market need, market size and competition. Market research, which includes social and opinion research, is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision—making.

Whatever the source of information about the market, it is a promising field for generation of ideas. Idea generation is knowledgeable, creative and systematic. It develops from knowledge of the consumer, the market, the technology and the general environment, and it creates newness in product, production and marketing.

It systematically develops product ideas to satisfy the aim of the project and therefore the business strategy. With increasing consumerism, the scope and nature of trade has enlarged; local trade, import and export, e-commerce are all making trading a very wide area of enterprise.

Trade, in simple terms, is downloading goods and services and selling them to consumers at a profit. One big advantage that trading has over other types of businesses is that, it is easier to launch and less risky.

It is however, necessary for a prospective trader to be aware of the trends in an economy. With the opening of the market to International Companies, large size departmental stores, chain shops and umbrella markets have become omnipresent; competition has become intense and to survive in the market, new entrants will have to acquire skills, competencies and knowledge required to launch, manage and expand business opportunities.

Service sector is the most growing field these days, the world over, thanks to emerging knowledge societies and advancements in Information and Technology. So, new opportunities can be identified by understanding the linkages to different business activities. The list of opportunities ready for the taking in the food and other service areas is rather long. Amongst the most interesting ones in the food sector are the following: While 'pizzas' and 'burgers' and popcorn may find a lot of favour from Indians across India, and across all age and income groups, the fact remains that almost all regions of India still have their own local fast food options and far outsell the "imports".

McDonald's and Pizza Hut can be the role models in terms of efficiency of service, hygiene, quality, and overall value, but the menu should be "Indian" rather than Indianised version of American food.

These can be based on the ubiquitous American Dinner concept or even the Indian version like Nirula's offering Indian style "Plated or Combo" meals, with table service and overall good price-value equation. Subway's success in select locations, despite somewhat inconsistent product quality, poor service, and high prices, indicates the tremendous opportunity in this segment. Sadly, there have been many start-ups and some continue to do well.

Lack of success in the recent past of some of the start-ups only highlights the need for better conceptualisation and execution of the format, rather than a lack of market opportunity. Haldiram's success should certainly put any doubt on this opportunity to rest.

What is needed is a belief that the Haldiram business model can be replicated and certainly improved upon from the customer service perspective by even large business houses such as ITC and others. India is incredibly blessed with one of the most diverse set of options when it comes to tourism. Fortunately, the perception of India as a tourist destination is also undergoing a very big positive change outside India.

Creating specialised options for high-end tourists from abroad offers a tremendous potential, with many segmentation possibilities based on the target market as well as special interests.

It may surprise some that the biggest organised player for personal grooming, with focus on hair care, example, Habib's to talk about. With over 25 million births per year, and at least 3 million of these likely to go for studies beyond the 12th grade, but having little idea about the job and vocation trends in India and beyond, this is one sector that is poised for rapid growth. India's low labour—related service costs can provide a cost-effective solution to the millions, while generating good returns on investment for the entrepreneur.

Apart from applying creativity to spot and harness opportunities, it can also be applied to develop new products and services. There are basically five ways in which creative ideas can be generated: Develop a new product or service. Improve an existing product or service 3. Find a new process or resource for manufacturing a product. Find new markets for existing products or services. Find a new use of an existing product or service. A very useful concept to bear in mind is that, most often creative products and services are born as results of problem solving.

Someone found that while tightening screws, over tightening often resulted in damage to the fixtures. Here was a problem and the solution came in the form of a self-adjusting screwdriver which prevented over tightening.

Similarly when doctors found monitoring of dosage of medicine to be administered to patients on a regular basis through traditional methods using a syringe cumbersome, a pharmaceutical firm developed a new process of implanting the required medicine in the patient for constant discharge of regulated and required dosage in to the blood stream. He later found Microsoft in Gates procured the software from another firm, essentially turning the thirty-dollar pair of jeans into a multibillion-dollar product.

By making software that increases human productivity, Gates expanded our ability to generate output and income , resulting in a higher standard of living for all. Sam Walton, the founder of Wal-Mart, was another entrepreneur who touched millions of lives in a positive way.

Product identification After opportunity spotting and scanning of the environment, an entrepreneurial idea should lead to a definite product. Transformation of ideas into opportunities While the initial spotting of ideas i. Thus the All basic ideas have to undergo a vigorous process of examination, evaluation, analysis and synthesis to identify viable opportunities.

This process of a basic idea becoming an opportunity is shown in the diagram below: Conversion of idea into opportunity The above figure shows that a strategic positioning is required to convert an idea into an opportunity. This simply means that knowledge, skills, competencies and creative thinking needed to develop an idea are backed by factors critical for market success.

When knowledge, skills, competencies and creativity are strategically applied or market orientation, a viable venture is born. Idea and opportunity assessment In a sense generating ideas is relatively an easy exercise, especially if it is done in groups.

However, this process can also become a wild goose chase because all ideas need not necessarily become sound business opportunities.

We have to assess it in terms of the potentiality of the opportunity. The steps involved in this type of investigation are discussed below: So the first step is to obtain a concept of the product or service suggested by one idea.

We should also see whether this product is already available in the market or not. If it is, then we should identify the reason for introducing the same product or service in the market. For example, innovating a new pendrive especially for teachers which will have a built in antivirus and which can be worn like a watch so it minimises the problem of losing the pendrive.

Application and use Ideas should be examined for their real life use and application. If it already exists in the market, we will have to find out its present use, then we may think of modifying it for better use. In the above mentioned example, we can clearly see that even though there are many companies manufacturing pendrives, the latest will be in consonance with the upcoming trends.

Cost What is the per unit cost of the product at particular level of operation? Whether this cost is comparable with that of other competitive products? These are some of the questions that have to be answered. This will ultimately decide the sale price. Competition Any product or service will face market competition at some stage. So market competition should be assessed through a study of the trends in demand and supply.

Technical complexity What type of technology is required to produce the product? Whether training and application of such technology will be locally available or will it have to be supported from other places?

What would be the position of supply of plant and machinery for such a technology? These are important issues that have to be resolved. Annual turnover and profit margin Ideas should also have to be examined on the basis of expected annual turnover. This will also indicate the market share of the product or service. Market assessment Selection of a product or service will depend upon many factors. While assessing the market, an entrepreneur has to prepare details on the following lines: Demand The demand assessment will be based on the size of market being targeted, i.

CBSE Class 12 Entrepreneurship eBook Download PDF

It will also involve a study of the target groups of consumers, their preferences, tastes and other related variables. Supply and nature of competition While assessing market, supply position is also studied by entrepreneurs. By supply position what is meant is the complete picture of quantities of the product made available in the market by all the existing players.

It should take into account future supplies from possible entrants in the field. Cost and price of product It is important to determine the cost of the product and its comparison with available products in the market.

Cost variable of competitors in terms of transportation delays, wastage, storage etc. This will influence the delivery mechanism of the identified product or service. Project innovation and change Market assessment will require a study of prevailing innovations and changes being carried out by existing entrepreneurs. Technological advancements in the field have to be analysed because they may change the quality and influence the cost and price ultimately.

Trend spotting It means identification of new trends. This will help the entrepreneur to understand the market and produce goods or provide services in sync with the market trends. But how do we spot trends? One of the keys to business success is to anticipate what the market will want or need before the entrepreneurs are aware of it themselves. Professional trend-spotters charge big money for reports and industry trend updates. But there are some entrepreneurs who spot these trends themselves.

There are so many ways to spot trends. Ways in which an entrepreneur spots trends 1. Read trends They regularly read the leading publications and websites affecting their business. This could include industry publications, trade association sites, major newspapers, key business magazines, thought leaders and influential bloggers. So many trends start overseas London, Paris, Tokyo , so they make sure that they read about what is going on in those cities.

At first, they scan information from a wide variety of sources - from international news on down to niche bloggers focused on specific aspects of their industry. They use tech—tools like RSS feeds, e-mail newsletters or websites and forums to keep on top out of all and get the information they want. They understand quickly which sources are valuable and which should be avoided. Talk trends Talking to people is an equally important trend-spotting tactic.

They also take advantage of social networking tools like social network websites and forums. They even start or join groups on the networks and see what people are buzzing about and about the latest trends. It's also important to talk to customers and prospective customers, both online and offline.

They use social media or online surveys to get input on what customers are thinking, downloading, craving and doing. They also use social network websites and forums to identify key influencers and trendsetters in their target markets. They make it a point to regularly go where their target customers hang out.

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If the customers are teenagers, that might be the local mall. The entrepreneur spends some time simply watching and observing. What are people eating, doing, wearing, using? What stores or restaurants draw crowds and which sit empty? Creativity Creativity is important to entrepreneurs because it is the first stage in the process of innovation, providing the stimulus for opportunity discovery and new venture creation.

As new entrants, entrepreneurs often justify themselves upon the same dimensions as creativity: Arguably, one of the first tasks demanded of an entrepreneur is to manifest creative ability through the conceiving of new product-market opportunities and unique value propositions. From these initial acts of creativity, entrepreneurs must build effective organizations that can repeatedly bring ideas to commercially valuable forms in order to survive and grow.

The process of creativity involves five steps: Idea germination, 2. Preparation, 3. Incubation, 4. Illumination and 5.

Idea germination: This is the seeding stage of a new idea. It is the stage where the entrepreneur recognises that an opportunity exists. The idea germination takes place according to interest, curiosity of the entrepreneur according to which opportunity is explored and exploited to its best potential. Creative idea germinates besides the interest, the need of a specific problem or area of study.

Like Mansukhbhai Prajapati, who thought of a non-stick pan made from clay and a clay refrigerator that works without electricity. He wanted to explore the idea of making the refrigerator which will be eco-friendly. He conceived this idea in , but the final product could take shape only in On the basis of the idea, interest and curiosity the need is adjudged by the entrepreneur and he starts looking for the answer to implement the idea.

That happens because the seed of curiosity has taken form of an idea, the entrepreneurs foresee the future of the product. Mansukhbhai's brain stormed immediately that, like his wife there must be thousands of homemakers who would need a non- stick-TAVA. And the idea of clay fridge was considered equally strong and he decided to go ahead. This is the subconscious assimilation of information. This is the transition period. The entrepreneur starts thinking about the idea and implementation in his sub-conscious mind.

Manshukhbhai went through the process of studying the pros and cons of manufacturing the product before he had launched it. In this period of illumination the idea re-surfaces in realistic way and entrepreneur comes out with viable plan to give practical shape by collecting raw-material, arranging funds, policy—making for the implementation of idea. In this case of Mansukhbhai it was important to have enough of funds in hand to download and keep in store enough raw-material.

Also called the validation or testing stage. This is where the idea is verified to prove that it has value. This is the most difficult phase of creativity as obstacles begin to appear. This is the developing stage in which knowledge is developed into application. In this case, when the fridge was developed acceptance in the market for such a product was a big obstacle.

It is the process of entrepreneurship which involves the translation of a useful idea into an application which has commercial value. It takes persistent effort to work out analytically the details of the enterprise or service, to develop marketing strategies, to organize finances and strategize operations. Elements in the innovation process: Carefully identifying the product or service features, design as well as the resources that will be needed.

Obtaining the required resources, materials, technology, human or capital resources. Applying the resources in order to accomplish the plans and delivering results. The provision of value to customers, reward employees, and satisfy the stake holders.

Selecting the right opportunity The entrepreneur should look into various factors before deciding on the opportunity. Even if the opportunity looks promising, an entrepreneur should look into the environmental factors before choosing the best opportunity. I L Across: Someone who organizes a business venture and assumes the risk for it.

Set of circumstances that make it possible to do something. Process through which something becomes different. Make changes in something established, especially by introducing new methods. Synonym for feasible.

Synonym of inventiveness. An economic or productive factor required to accomplish an activity. A sum of money saved or made available for a particular purpose. Financial gain. The ability to do something well; expertise. Synonym of rivalry. Something that can be offered to a market that might satisfy a want or need. Amount invested in business.

Very short answers. Answers to these questions should not exceed 15 words. What factors are involved in the process of sensing an entrepreneurial opportunity? Define the term environment scanning. List the environmental factors affecting external environment. What is the meaning of trend spotting? What is required to convert an idea into opportunity?

What is Idea generation? Short answers. Answers to these questions should not exceed 50 words. What is the purpose to scan the environment? What are the factors involved in sensing opportunities? Draw the enterprise process diagram. Explain it. Answers to these questions should not exceed 75 words. Enlist the various sources which lead to the emergence of basic ideas. Write the meaning of product identification in terms of business opportunity.

What are the factors an entrepreneur has to keep in mind whilst assessing the market? What are the various ways in which an entrepreneur spots trends? Long answers. Answers to these questions should not exceed words. Rather it is dependent upon several various environmental factors.

Explain them. Explain creative process. What is Innovation and explain the elements of innovation process? Very long answers. Elaborate the factors involved in sensing opportunities. Examine the sources from where business ideas emerge. Discuss the steps involved in the investigation of ideas. What do you understand by Trend Spotting? What are the ways by which entrepreneurs can spot trends? Explain in detail Idea Fields.

Aditi started her boutique business near an industrial area and she was not getting clients as she had expected. What are the factors which have been ignored before starting the boutique? Suggest the various factors that she has to look into before venturing into business. Raghav had always wanted to manufacture an innovative, energy efficient fan. He was looking into various options and has finally narrowed it down to one option. He understands that the entire idea would have to follow a process.

Identify and explain the process. Varun decided to start his own venture and was looking into various ideas. Explain to him various sources from where he can get some good business ideas. Application—based questions: Vinay was a young entrepreneur who wanted to start a new business with an initial investment of 25 lakhs. He was not sure of what business he has to undertake.

His friend suggested seeking the help of professionals who would spot the latest trends in the market and give him an idea, but Vinay decided to do it by himself. Suggest the various ways by which he can do it. Conduct a survey in your colony by asking people if they face any particular problem and see if you can find a solution to that problem. Think of an innovative product and conduct a survey in your colony and analyse whether it will be accepted in your neighbourhood.

Imagination will take you everywhere. Because of being a bundle of recurring needs and wants, every person is engaged in some kind of activity with a view to earn his living and satisfy the material and social requirements. Activity, a symbol of human life may broadly be categorized into: Activities undertaken to earn monetary gains are called economic i. Activities done out of love, care, affection, self-satisfaction, emotions, sympathy, patriotism etc.

Types of Economic Activities Activities which are inspired mainly by economic consideration can be classified in three broad categories: In a way all economic activities related to the production and distribution of goods and services undertaken for monetary gains, are said to be business.

Activities which are inspired mainly by economic consideration can be classified in three broad categories: Production of merchandise for use or sale using labour and machines, tools, chemical and biological processing, or formulation, may also refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale.

Such finished goods may be used for manufacturing other, more complex products, such as aircrafts, house hold appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users — the "CONSUMERS". Manufacturing takes turns under all types of economic system.

In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy.

In mixed market economies, manufacturing occurs under some degree of government regulation. An intangible commodity a type of economic activity that is intangible is not stored and does not result in ownership. A service is consumed at the point of sale.

Services are one of the two key components of economics, the other being goods. Examples of services include the transfer of goods, such as the postal service—delivering mail, and the use of expertise or experience, such as a person visiting a doctor.

This sector constitutes the basic infrastructure which is a must for smooth flow of business activities. In the recent past, the role of service sector in the Indian economy is growing faster than agriculture and industry.

Not a new phenomenon we've been doing it for centuries! The trade that occurred among the most primitive humans has evolved considerably over time.

In a way all economic activities related to the production and distribution of goods and services undertaken for monetary gains are said to be business. Different Authors, Different Opinions Business is "whole complex field of commerce and industry, the basic industries, process and manufacturing and the network of ancillary services, distribution, banking, insurance, transport and so on which serve and interpenetrate the world of business as a whole.

Hooper Business may be defined as "an activity in which different persons exchange something of value whether goods and services for mutual gain or profit. Irrespective of size, nature, scale or ownership, an activity is referred as business if it exhibits the following essential characteristics: Business must be done regularly. The actual business situation is affected by a variety of uncontrollable external factors casting favourable or unfavourable impact on business. Thus, the risk element keeps a businessman vigilant and going.

Forms of business organisation Setting-up a business is not an easy task. An enterprise is a separate and distinct unit, institutionally arranged to conduct any type of business activity. It needs to combine the necessary things such as materials, tools, equipment, working space and bring together all of them in a systematic and effective manner to accomplish the entrepreneur's desired objective.

This legal structure determines the extent of ownership and responsibility of proprietor s. Appropriate form of organisation strongly influences the enterprise's success and future prospects. Once selected, changing the 'form' is quite a complex, time consuming and costly affair.

Forms of enterprises From the point of view of ownership and management, business enterprises may be broadly classified under three categories. Private individuals thus could start a venture as: Either the whole or most of the investment in these undertakings is done by the Government s. These enterprises have the following forms of organisation: Resources are mostly borne equally. Thus, one of the first decisions that an entrepreneur will have to make for his new venture is how the business should be structured.

We know all businesses must adopt some legal configuration that defines the: This decision will have long-term implications. In making a choice, entrepreneur will want to take into account the following: From the entrepreneur's point of view the most commonly opted out forms for starting a new venture are: An overview of the five basic legal forms of organization is as follows: Sole proprietorship "The one-man control is the best in the world if that man is big enough to manage everything.

One Man Show Tom Monaghan, the founder of Domino's Pizza, had a tough childhood, was raised in orphanages and foster homes. Jim left within the year, but Tom hung on, surviving two near - bankruptcies and a fire.

Started as sole and today a MNC — a long successful journey of 'one big man'. Historically, it appears that business first started with this form of organization. One of the oldest, simplest and most commonly used forms of business organization which is owned financed, controlled and managed by only one person is called as sole proprietorship, single entrepreneurship or Individual proprietorship.

Elbourne "Sole proprietorship is a business unit whose ownership and management are vested in one person. The individual assumes all risks of loss or failure of the enterprise and receives all profits from its successful operations. Characteristics of sole proprietorship: As 'sole' means single and 'proprietor' means owner, this type of business is one person show exhibiting following features: This business is exclusively owned by a single person.

Though, competent people can also be employed for efficient management. All investment is made by the proprietor.

Legally, the proprietor and proprietorship are one and the same business and owner exists together, thus with owner's death, business too dies. The sole proprietor alone is entitled to all the profits and losses of business. This form of business generally has a limited area of operation due to: Before opting for sole proprietorship, an entrepreneur should carefully compare and evaluate pros and cons of this form.

Basically, this type of form is suitable when: Capital requirement is limited 2. Market is local 4. Goods are of artistic nature or demands customized approach 5. Quick decision—making is necessary 6. Size of the venture is small. As a youngster, Onassis had immigrated to Argentina from Greece.

He learned Spanish at night and sold tobacco by day. At merely 15, he landed a big tobacco order and reinvested in his petty business. As he accumulated more money, his small business was eventually built into his great financial empire. However, in order to start a sole proprietorship an entrepreneur requires certain industry specific licenses. A few general factors are: Business name: Sole proprietors are under no obligations to select a trade name for their business.

How so ever they are free to do so if they desire to. Service tax registration: Form ST 1 is to be filled for registration if the taxable services are more than 10 lakh for a financial year. PAN Card no. Payment of taxes: Due to the fact that legally, a sole tradership and a sole trader are a single entity, the sole trader bears the taxes of the business. People waiting in the scorching heat just to download a pair of shoes? From Rags to Riches One dreary November morning in , Satya left his home in Jamshedpur and came to Calcutta with little more than the clothes on his back.

He wore a pair of corduroy pants, a shirt and a pair of sturdy shoes made by his father. Before he left home, his mother had pressed in his hands a few hundred-rupee notes, which he brought with him. Today, Satya Brata Dey is a millionaire, a crorepati.

And what gives him the greatest satisfaction is that, he provides jobs for people in Wes t Bengal-a state where there are very few industries and over five million unemployed.

She believed in herself and encouraged Satya to do the same. Remember that. Always win. He won. And he won against great odds. His shoes were so sturdy that they could last twenty years. It was this apprenticeship under a master shoemaker like his father that taught Satya very early in life, a priceless craft. Increase sales: The main reason people will change and improve their existing product line is to increase their sales and ultimately, their revenue.

By adding to the product line, you can take your company in a new direction by increasing sales. Let's take the example of the tutoring business. While you may have a good number of clients, they are all math students.

Just as many students will need extra help in other disciplines. Expanding the existing service will only result in increased profits.

So thinking about existing product and service can generate a number of ideas to improve them or to provide cheaper substitutes or to bring about a reduction in price. Market driven or demand driven ideas We have already seen that one of the important methods for generating ideas is to carry out a market research.

Such a study yields valuable data about trends of supply, demand and consumer preferences. Market research is any organized effort to gather information about target markets or customers. It is a very important component of business strategy.

The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a. Market research is a key factor to maintain competitiveness over competitors.

Market research provides important information to identify and analyze the market need, market size and competition. Market research, which includes social and opinion research, is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decisionmaking. Whatever the source of information about the market, it is a promising field for generation of ideas.

Idea generation is knowledgeable, creative and systematic. It develops from knowledge of the consumer, the market, the technology and the general environment, and it creates newness in product, production and marketing.

It systematically develops product ideas to satisfy the aim of the project and therefore the business strategy. Trading related ideas Trading these days is not limited to ordinary grocer or distributor outlets. With increasing consumerism, the scope and nature of trade has enlarged; local trade, import and export, e-commerce are all making trading a very wide area of enterprise.

Trade, in simple terms, is downloading goods and services and selling them to consumers at a profit. One big advantage that trading has over other types of businesses is that, it is easier to launch and less risky. It is however, necessary for a prospective trader to be aware of the trends in an economy. With the opening of the market to International Companies, large size departmental stores, chain shops and umbrella markets have become omnipresent; competition has become intense and to survive in the market, new entrants will have to acquire skills, competencies and knowledge required to launch, manage and expand business opportunities.

Service sector ideas Entrepreneurial opportunities are not only restricted to the manufacturer. Service sector is the most growing field these days, the world over, thanks to emerging knowledge societies and advancements in Information and Technology. So, new opportunities can be identified by understanding the linkages to different business activities.

The list of opportunities ready for the taking in the food and other service areas is rather long. Amongst the most interesting ones in the food sector are the following:. While 'pizzas' and 'burgers' and popcorn may find a lot of favour from Indians across India, and across all age and income groups, the fact remains that almost all regions of India still have their own local fast food options and far outsell the "imports". McDonald's and Pizza Hut can be the role models in terms of efficiency of service, hygiene, quality, and overall value, but the menu should be "Indian" rather than Indianised version of American food.

Family dinner: These can be based on the ubiquitous American Dinner concept or even the Indian version like Nirula's offering Indian style "Plated or Combo" meals, with table service and overall good price-value equation. Sandwich and salad parlours: Subway's success in select locations, despite somewhat inconsistent product quality, poor service, and high prices, indicates the tremendous opportunity in this segment.

Sadly, there have been many start-ups and some continue to do well. Lack of success in the recent past of some of the start-ups only highlights the need for better conceptualisation and execution of the format, rather than a lack of market opportunity.

Indian "desserts" and "snack food" chains: Haldiram's success should certainly put any doubt on this opportunity to rest. What is needed is a belief that the Haldiram business model can be replicated and certainly improved upon from the customer service perspective by even large business houses such as ITC and others.

Speciality tourism: India is incredibly blessed with one of the most diverse set of options when it comes to tourism. Fortunately, the perception of India as a tourist destination is also undergoing a very big positive change outside India. Creating specialised options for high-end tourists from abroad offers a tremendous potential, with many segmentation possibilities based on the target market as well as special interests.

Personal grooming salons: It may surprise some that the biggest organised player for personal grooming, with focus on hair care, example, Habib's to talk about. Career counselling centres: With over 25 million births per year, and at least 3 million of these likely to go for studies beyond the 12th grade, but having little idea about the job and vocation trends in India and beyond, this is one sector that is poised for rapid growth.

India's low labourrelated service costs can provide a cost-effective solution to the millions, while generating good returns on investment for the entrepreneur. Creative efforts We have seen that creativity is an important and key component of the talents and abilities needed for an entrepreneur.

Apart from applying creativity to spot and harness opportunities, it can also be applied to develop new products and services. There are basically five ways in which creative ideas can be generated: Develop a new product or service.

Improve an existing product or service 3. Find a new process or resource for manufacturing a product. Find new markets for existing products or services. Find a new use of an existing product or service. A very useful concept to bear in mind is that, most often creative products and services are born as results of problem solving.

Someone found that while tightening screws, over tightening often resulted in damage to the fixtures. Here was a problem and the solution came in the form of a self-adjusting screwdriver which prevented over tightening. Similarly when doctors found monitoring of dosage of medicine to be administered to patients on a regular basis through traditional methods using a syringe cumbersome, a pharmaceutical firm developed a new process of implanting the required medicine in the patient for constant discharge of regulated and required dosage in to the blood stream.

He later found Microsoft in Gates procured the software from another firm, essentially turning the thirty-dollar pair of jeans into a multibillion-dollar product. Microsofts Office and Windows operating software now run on about 90 percent of the worlds computers. By making software that increases human productivity, Gates expanded our ability to generate output and income , resulting in a higher standard of living for all.

Sam Walton, the founder of Wal-Mart, was another entrepreneur who touched millions of lives in a positive way. His innovations in distribution warehouse centers and inventory control allowed Wal-Mart to grow, in less than thirty years, from a single store in Arkansas to the nations largest retail chain. Shoppers benefit from the low prices and convenient locations that Waltons WalMarts provide.

Product identification After opportunity spotting and scanning of the environment, an entrepreneurial idea should lead to a definite product.

Transformation of ideas into opportunities While the initial spotting of ideas i. Thus the All basic ideas have to undergo a vigorous process of examination, evaluation, analysis and synthesis to identify viable opportunities. This process of a basic idea becoming an opportunity is shown in the diagram below:. The above figure shows that a strategic positioning is required to convert an idea into an opportunity.

This simply means that knowledge, skills, competencies and creative thinking needed to develop an idea are backed by factors critical for market success.

When knowledge, skills, competencies and creativity are strategically applied or market orientation, a viable venture is born. Idea and opportunity assessment In a sense generating ideas is relatively an easy exercise, especially if it is done in groups. However, this process can also become a wild goose chase because all ideas need not necessarily become sound business opportunities. We have to assess it in terms of the potentiality of the opportunity. The steps involved in this type of investigation are discussed below: So the first step is to obtain a concept of the product or service suggested by one idea.

We should also see whether this product is already available in the market or not. If it is, then we should identify the reason for introducing the same Bracelet Pendrive product or service in the market. For example, innovating a new pendrive especially for teachers which will have a built in antivirus and which can be worn like a watch so it minimises the problem of losing the pendrive. Application and use Ideas should be examined for their real life use and application.

If it already exists in the market, we will have to find out its present use, then we may think of modifying it for better use. In the above mentioned example, we can clearly see that even though there are many companies manufacturing pendrives, the latest will be in consonance with the upcoming trends.

Cost What is the per unit cost of the product at particular level of operation? Whether this cost is comparable with that of other competitive products? These are some of the questions that have to be answered. This will ultimately decide the sale price. Competition Any product or service will face market competition at some stage.

So market competition should be assessed through a study of the trends in demand and supply. Technical complexity What type of technology is required to produce the product?

Whether training and application of such technology will be locally available or will it have to be supported from other places? What would be the position of supply of plant and machinery for such a technology?

These are important issues that have to be resolved. Annual turnover and profit margin Ideas should also have to be examined on the basis of expected annual turnover. This will also indicate the market share of the product or service. Market assessment Selection of a product or service will depend upon many factors. While assessing the market, an entrepreneur has to prepare details on the following lines: Demand The demand assessment will be based on the size of market being targeted, i.

It will also involve a study of the target groups of consumers, their preferences, tastes and other related variables. Supply and nature of competition While assessing market, supply position is also studied by entrepreneurs.

By supply position what is meant is the complete picture of quantities of the product made available in the market by all the existing players. It should take into account future supplies from possible entrants in the field. Cost and price of product It is important to determine the cost of the product and its comparison with available products in the market.

Cost variable of competitors in terms of transportation delays, wastage, storage etc. This will influence the delivery mechanism of the identified product or service.

Project innovation and change Market assessment will require a study of prevailing innovations and changes being carried out by existing entrepreneurs. Technological advancements in the field have to be analysed because they may change the quality and influence the cost and price ultimately.

Trend spotting It means identification of new trends. This will help the entrepreneur to understand the market and produce goods or provide services in sync with the market trends. But how do we spot trends? One of the keys to business success is to anticipate what the market will want or need before the entrepreneurs are aware of it themselves. Since its unlikely for an entrepreneur to see into the future, the best way to do this is to become a trend-spotter.

Professional trend-spotters charge big money for reports and industry trend updates. But there are some entrepreneurs who spot these trends themselves. There are so many ways to spot trends. Ways in which an entrepreneur spots trends 1. Read trends They regularly read the leading publications and websites affecting their business. This could include industry publications, trade association sites, major newspapers, key business magazines, thought leaders and influential bloggers.

So many trends start overseas London, Paris, Tokyo , so they make sure that they read about what is going on in those cities. At first, they scan information from a wide variety of sources - from international news on down to niche bloggers focused on specific aspects of their industry.

Obviously, theres a tsunami of information available. They use techtools like RSS feeds, e-mail newsletters or websites and forums to keep on top out of all and get the information they want.

They understand quickly which sources are valuable and which should be avoided. Talk trends Talking to people is an equally important trend-spotting tactic.

They get involved in specific industrys trade association and attending events both online and offline. They also take advantage of social networking tools like social network websites and forums. They even start or join groups on the networks and see what people are buzzing about and about the latest trends. It's also important to talk to customers and prospective customers, both online and offline. They use social media or online surveys to get input on what customers are thinking, downloading, craving and doing.

They also use social network websites and forums to identify key influencers and trendsetters in their target markets.

In addition, they pay attention to ratings and review sites -- not just what customers are saying about the business, but what theyre saying about the competitors business. Watch trends Theres no substitute for getting out in the marketplace. They make it a point to regularly go where their target customers hang out. If the customers are teenagers, that might be the local mall. If they are business people, it might be the regions "power lunch" restaurant or office park restaurant center.

The entrepreneur spends some time simply watching and observing. What are people eating, doing, wearing, using? What stores or restaurants draw crowds and which sit empty? Trade shows are a great place to get trend ideas, too even if they are not looking to download product, they attend many shows simply to see whats hot.

Think trends As an entrepreneur begins gathering all these information regularly, they will start to develop a trend-spotter mind. As they absorb and mull about what theyve read, heard and observed, theyll start to make connections and observations that will lead to business-boosting insights. The news about rising shrimp prices, the lines out the door at the Asian-fusion restaurant downtown, and something one of the customers said last week will all come together and theyll have a great idea for a new menu item, a new product line or even a whole new business.

Creativity Creativity is important to entrepreneurs because it is the first stage in the process of innovation, providing the stimulus for opportunity discovery and new venture creation. As new entrants, entrepreneurs often justify themselves upon the same dimensions as creativity: Arguably, one of the first tasks demanded of an entrepreneur is to manifest creative ability through the conceiving of new product-market opportunities and unique value propositions.

From these initial acts of creativity, entrepreneurs must build effective organizations that can repeatedly bring ideas to commercially valuable forms in order to survive and grow. The process of creativity involves five steps: Idea germination, 2. Preparation, 3. Incubation, 4. Illumination and 5. Idea germination: This is the seeding stage of a new idea. It is the stage where the entrepreneur recognises that an opportunity exists.

The idea germination takes place according to interest, curiosity of the entrepreneur according to which opportunity is explored and exploited to its best potential. Creative idea germinates besides the interest, the need of a specific problem or area of study. Like Mansukhbhai Prajapati, who thought of a non-stick pan made from clay and a clay refrigerator that works without electricity. He wanted to explore the idea of making the refrigerator which will be eco-friendly.

He conceived this idea in , but the final product could take shape only in On the basis of the idea, interest and curiosity the need is adjudged by the entrepreneur and he starts looking for the answer to implement the idea. If the idea is to launch That happens because the seed of curiosity has taken form of an idea, the entrepreneurs foresee the future of the product. Mansukhbhai's brain stormed immediately that, like his wife there must be thousands of homemakers who would need a nonstick-TAVA.

And the idea of clay fridge was considered equally strong and he decided to go ahead. This is the subconscious assimilation of information. This is the transition period. The entrepreneur starts thinking about the idea and implementation in his sub-conscious mind.

Manshukhbhai went through the process of studying the pros and cons of manufacturing the product before he had launched it. In this period of illumination the idea re-surfaces in realistic way and entrepreneur comes out with viable plan to give practical shape by collecting raw-material, arranging funds, policymaking for the implementation of idea.

In this case of Mansukhbhai it was important to have enough of funds in hand to download and keep in store enough raw-material. Also called the validation or testing stage. This is where the idea is verified to prove that it has value. This is the most difficult phase of creativity as obstacles begin to appear. This is the developing stage in which knowledge is developed into application. In this case, when the fridge was developed acceptance in the market for such a product was a big obstacle.

It is the process of entrepreneurship which involves the translation of a useful idea into an application which has commercial value. It takes persistent effort to work out analytically the details of the enterprise or service, to develop marketing strategies, to organize finances and strategize operations. Elements in the innovation process:. Analytical planning: Carefully identifying the product or service features, design as well as the resources that will be needed.

Resource organization: Obtaining the required resources, materials, technology, human or capital resources. Commercial application: The provision of value to customers, reward employees, and satisfy the stake holders.

Selecting the right opportunity The entrepreneur should look into various factors before deciding on the opportunity. Even if the opportunity looks promising, an entrepreneur should look into the environmental factors before choosing the best opportunity. Elements of business opportunity. Verbal information from customers, wholesalers, retailers distribution, consultants, etc. Idea Generation The process of creating, developing and communicating ideas which are abstract, concrete or visual Sources of business ideas.

Keep up with current events and be ready to take advantage of business opportunities. Its fine to celebrate success, but it is more important to heed the lessons of failure. Bill Gates. Sensitivity to environmental factors is essential for an entrepreneur. In light of above statement explain the importance of environment scanning. Rather it is dependent upon several various environmental factors. Explain them. What do you understand by Trend Spotting? What are the ways by which entrepreneurs can spot trends?

Aditi started her boutique business near an industrial area and she was not getting clients as she had expected. What are the factors which have been ignored before starting the boutique? Suggest the various factors that she has to look into before venturing into business. Raghav had always wanted to manufacture an innovative, energy efficient fan. He was looking into various options and has finally narrowed it down to one option.

He understands that the entire idea would have to follow a process. Identify and explain the process. These are convenient frames of reference for streamlining the process of generation of ideas. Identify them and explain any three briefly.

Varun decided to start his own venture and was looking into various ideas. Explain to him various sources from where he can get some good business ideas. Vinay was a young entrepreneur who wanted to start a new business with an initial investment of 25 lakhs.

He was not sure of what business he has to undertake. His friend suggested seeking the help of professionals who would spot the latest trends in the market and give him an idea, but Vinay decided to do it by himself. Suggest the various ways by which he can do it. Conduct a survey in your colony by asking people if they face any particular problem and see if you can find a solution to that problem. Think of an innovative product and conduct a survey in your colony and analyse whether it will be accepted in your neighbourhood.

For example, new Idea for waste disposal. Imagination will take you everywhere. Albert Einstein. Human life is built around work.

Because of being a bundle of recurring needs and wants, every person is engaged in some kind of activity with a view to earn his living and satisfy the material and social requirements. Activity, a symbol of human life may broadly be categorized into: Economic Activities: Activities undertaken to earn monetary gains are called economic i. Non-Economic activities: Activities done out of love, care, affection, self-satisfaction, emotions, sympathy, patriotism etc.

Types of Economic Activities Activities which are inspired mainly by economic consideration can be classified in three broad categories: Profession "Profession is that occupation in which one professes to have acquired specialized knowledge, which is used either in instructing, guiding or advising others," says the Webster's Dictionary. Employment An activity in which an individual works regularly for others and get remuneration in return, undertaking personal services as per the agreement of employment.

Business This is our key area of study. In a way all economic activities related to the production and distribution of goods and services undertaken for monetary gains, are said to be business. Activities which are inspired mainly by economic consideration can be classified in three broad categories: Production of merchandise for use or sale using labour and machines, tools, chemical and biological processing, or formulation, may also refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale.

Such finished goods may be used for manufacturing other, more complex products, such as aircrafts, house hold appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users the "CONSUMERS". Manufacturing takes turns under all types of economic system.

In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy.

In mixed market economies, manufacturing occurs under some degree of government regulation. An intangible commodity a type of economic activity that is intangible is not stored and does not result in ownership. A service is consumed at the point of sale. Services are one of the two key components of economics, the other being goods. Examples of services include the transfer of goods, such as the postal servicedelivering mail, and the use of expertise or experience, such as a person visiting a doctor.

Service sector includes commercial firms engaged in banking, communication, transport, insurance, warehousing etc. This sector constitutes the basic infrastructure which is a must for smooth flow of business activities.

In the recent past, the role of service sector in the Indian economy is growing faster than agriculture and industry. Not a new phenomenon we've been doing it for centuries! The trade that occurred among the most primitive humans has evolved considerably over time.

Trading is;. In a way all economic activities related to the production and distribution of goods and services undertaken for monetary gains are said to be business. Different Authors, Different Opinions Business is "whole complex field of commerce and industry, the basic industries, process and manufacturing and the network of ancillary services, distribution, banking, insurance, transport and so on which serve and interpenetrate the world of business as a whole.

Hooper Business may be defined as "an activity in which different persons exchange something of value whether goods and services for mutual gain or profit. Wheeler Business is a continuous human economic activity with an objective to earn profit by producing, downloading and selling of goods and services. Irrespective of size, nature, scale or ownership, an activity is referred as business if it exhibits the following essential characteristics: Production or procurement of goods and services A business which either produces or procures goods and services for offering them to consumers, could be: Regularity One time transaction or dealing in goods and services is not business, even if one earns profit in return.

Business must be done regularly. Place utility From the place of production, transporting goods to the place of consumption results in place utility. Time utility The process of storing the goods when not required to supplying them when required generates time utility. Profit earning Profit is the reward for undertaking a business activity as no business can survive for long without earning profits. Uncertainty of return Business does not guarantee for the return of either principal amount invested in the business or the profit.

Element of risk Business involves risk i. The actual business situation is affected by a variety of uncontrollable external factors casting favourable or unfavourable impact on business. Thus, the risk element keeps a businessman vigilant and going.

Forms of business organisation Setting-up a business is not an easy task. An enterprise is a separate and distinct unit, institutionally arranged to conduct any type of business activity. It needs to combine the necessary things such as materials, tools, equipment, working space and bring together all of them in a systematic and effective manner to accomplish the entrepreneur's desired objective.

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Thus, every business entity needs to select an appropriate legal structure or framework to work in. This legal structure determines the extent of ownership and responsibility of proprietor s. Appropriate form of organisation strongly influences the enterprise's success and future prospects. Once selected, changing the 'form' is quite a complex, time consuming and costly affair. Forms of enterprises From the point of view of ownership and management, business enterprises may be broadly classified under three categories.

The enterprises which are owned, controlled, and managed by private individuals, with the main objective of earning profit comes under this category. Private individuals thus could start a venture as: Public sector enterprises When business enterprises are owned, controlled and operated by public authorities, with welfare as primary and profit as secondary goals, they are called as public sector enterprises.

Either the whole or most of the investment in these undertakings is done by the Government s. These enterprises have the following forms of organisation:. Joint sector enterprises Joint sector is a form of partnership between the private sector and the government where management is generally in the hands of private sector, with enough representation on Board of Directors by the Government too.

Resources are mostly borne equally. Thus, one of the first decisions that an entrepreneur will have to make for his new venture is how the business should be structured. We know all businesses must adopt some legal configuration that defines the: This decision will have long-term implications.

In making a choice, entrepreneur will want to take into account the following: From the entrepreneur's point of view the most commonly opted out forms for starting a new venture are: As entrepreneurs are strongly motivated by monetary gains and independence, these three forms fulfill the basic requirement of entrepreneurs well, making them the most desirable structure to commence a venture.

An overview of the five basic legal forms of organization is as follows:. Sole proprietorship "The one-man control is the best in the world if that man is big enough to manage everything. One Man Show Tom Monaghan, the founder of Domino's Pizza, had a tough childhood, was raised in orphanages and foster homes.

Jim left within the year, but Tom hung on, surviving two near - bankruptcies and a fire. Started as sole and today a MNC a long successful journey of 'one big man'.

Historically, it appears that business first started with this form of organization. One of the oldest, simplest and most commonly used forms of business organization which is owned financed, controlled and managed by only one person is called as sole proprietorship, single entrepreneurship or Individual proprietorship.

Elbourne "Sole proprietorship is a business unit whose ownership and management are vested in one person. The individual assumes all risks of loss or failure of the enterprise and receives all profits from its successful operations. Edward Elbourne. Characteristics of sole proprietorship: As 'sole' means single and 'proprietor' means owner, this type of business is one person show exhibiting following features: Individual management and control: Though, competent people can also be employed for efficient management.

Individual financing: All investment is made by the proprietor. No separate legal entity: Legally, the proprietor and proprietorship are one and the same business and owner exists together, thus with owner's death, business too dies. Unlimited liability: Sole beneficiary: The sole proprietor alone is entitled to all the profits and losses of business. Easy formation and closure: Limited area of operation: This form of business generally has a limited area of operation due to:.

Suitability of sole proprietorship form of business The success or failure of an enterprise depends upon the intelligence, competence and sensible decision making capacity of the entrepreneur. Before opting for sole proprietorship, an entrepreneur should carefully compare and evaluate pros and cons of this form.

Basically, this type of form is suitable when: Shipping tycoon Aristotle Onassis, was one of the richest men in the world in the s. As a youngster, Onassis had immigrated to Argentina from Greece. He learned Spanish at night and sold tobacco by day. At merely 15, he landed a big tobacco order and reinvested in his petty business. As he accumulated more money, his small business was eventually built into his great financial empire.

Legal formalities involved Sole proprietorship registration procedure A sole proprietorship does not need to be registered so yes, 'registration of a sole proprietorship' is a wrong thing to say and is therefore an inexpensive manner of commencing business.

However, in order to start a sole proprietorship an entrepreneur requires certain industry specific licenses. A few general factors are: Business name: Sole proprietors are under no obligations to select a trade name for their business.

How so ever they are free to do so if they desire to. Service tax registration: Form ST 1 is to be filled for registration if the taxable services are more than 10 lakh for a financial year. PAN Card no. Payment of taxes: Due to the fact that legally, a sole tradership and a sole trader are a single entity, the sole trader bears the taxes of the business.

People waiting in the scorching heat just to download a pair of shoes? From Rags to Riches One dreary November morning in , Satya left his home in Jamshedpur and came to Calcutta with little more than the clothes on his back.

He wore a pair of corduroy pants, a shirt and a pair of sturdy shoes made by his father. Before he left home, his mother had pressed in his hands a few hundred-rupee notes, which he brought with him. Today, Satya Brata Dey is a millionaire, a crorepati. And what gives him the greatest satisfaction is that, he provides jobs for people in Wes t Bengal-a state where there are very few industries and over five million unemployed. Parents had a strong influence on his life Satyas mother was always a strong woman and still is, even at age eighty.

She believed in herself and encouraged Satya to do the same. Son, she would say stroking his unruly hair into place, No matter what you do, always win. Remember that. Always win. Satya learned his lesson well. He won. And he won against great odds.

Sayas father owned a small shop in Jamshedpur where he made shoes. His shoes were so sturdy that they could last twenty years. As a teenager, Satya often went to his fathers shop and helped him make shoes.

Thats where he learned the fine art of making sturdy, good looking shoes at a reasonable cost. It was this apprenticeship under a master shoemaker like his father that taught Satya very early in life, a priceless craft.

Little did he know then, that what he was learning in his fathers humble shop in Jamshedpur, would someday make him a millionaire, a crorepati in Calcutta. He would have laughed if someone had told him back then, that someday, he would create jobs for hundreds of people with this priceless craft that he learned from his father. When he remembers his father bending over his worktable making shoes day after day, tears glisten in his eyes. Tears of love and pride. He remembers his fathers hands that had, over the years become hard and tough like the leather he worked with.

Today, Satya would give anything to be able to hold those callused, wrinkled hands in his own and invite him to come and see the little boy.

But Satyas father is no more. Whereas Satya manages a business worth crores, what he is most proud of is that even today he can make shoes with his own hands.

From his beloved father, Satya learned another important lesson that would come in very handy for him later in life the dignity of labour. The value and worth of working with ones own hands. Because of his background, Satya has great respect for the working man. In his business, he treats his employees and workmen like family members and they in turn give him their undying loyalty.

That is one of the secrets of his success. Start your own business? Thats despicable In Satyas Bengali community, running ones own business was not much respected. Starting a business was looked down upon. Businessmen were seen as people who amassed wealth at the cost of others. They took too much risk. What if the business failed?

What would you do then? On the other hand, a secure government job was quite another thing. Becoming a babu in a government department was coveted. Once you got your foot in the door, nobody could fire you and whether you worked or not the government paid you and even when you retired the government paid you and even when you retired the government took care of you.

It gave you a pension. It was like your father-in-laws house. You were always a well-looked after guest. The second best thing to being a government employee was being in service, getting a job in someone elses business. Of course, if you had a job in somebodys private business enterprise, you did not get good marriage proposals as the government employee would, but there was still hope for you.

You had a job. Making shoes was low in the prestige ladder It was bad enough to do a risky thing like running ones own business, but making shoes? That was truly low down in the prestige ladder of the community. Satya had faced this kind He remembers well the days he used to go to his fathers shop after school to help out.

One day his fathers friend said to him, Why do you let your son come here and waste his time? Doesnt he have anything better to do? He should learn skills that would get him a job instead of doing this. Satya remembered this comment made by his fathers friend as he wandered down the streets of Calcutta looking for a place where he could start a business making shoes.

Thank goodness he had learned the trade and art of making good shoes. There were no jobs available and last thing he wanted to do was join the ranks of the unemployed. But Satya had never considered looking for a job.

Satya dreamed big but reality hit hard Ever since Satya was four or five he knew he wanted to have his own business. Hot, tired and hungry, Satya wandered down the streets of Calcutta looking for a place that could be his showroom or shop. At the corner of a deserted street, he spotted a rundown showroom that was for rent. He used the money his mother gave him to pay the rent and moved in.

It was his home and show room rolled in one. The show room was rat and cockroach infested. The paint on the walls was peeling. It was dingy, dirty and dimly lit. The windows were filthy and you could hardly see through them. The floor had several layers of dust caked with moisture. But for Satya, it was his dream showroom. It was his place. Every night Satya washed his pants and shirt and hung them to dry.

Often his corduroy pants were still wet in the morning. He wore the wet pants anyway and hoped that his body heat would dry them during the course of the day. I was sweeper, painter, salesman, owner everything rolled into one, says Satya. Never be afraid to dream big, he advises. You can make your dreams come true. Even as he dreamed his big dreams, he continued to live in the filthy, run-down show room.

He set about cleaning and fixing it. He swept and mopped until the floor shone. Then he cleaned the windows with soap and water until they sparkled and finally he painted the walls until the showroom looked bright and attractive and ready for business. Satya Starts his business Satya starts his business venture with downloading six pairs of ladies chappals.

He was determined not to borrow money from anybody. He sold the chappals at Rs. After a few months Satya made a profit of Rs. Now he was really in business Satyas business philosophy develops Satyas showroom was in New Market.

In those days New Market used to close by 6 pm. After 6 or 7 pm the whole area used to be dark and deserted. But Satya opened his shop before anyone else and kept it open long after others had closed theirs.

He did this even if there were no customers. What if there was one customer who needed shoes late in the day when the other shops were closed? Gradually over a period of time, Satya started to manufacture the shoes that he sold in his store. He positioned his shoes as poor mans shoes-good quality and inexpensive. He kept his margins low so that he could attract a large number of customers. Even though his shoes were meant to attract the low-income customers, many ministers and businesspeople also bought his shoes.

Soon satisfied customers brought their friends and family and his business started to grow by leaps and bounds. He had a winning combination for success-the quality was good and the price was right. A shrewd businessman that Satya is, he kept other manufacturers products as well, so the customers could compare and see that sreeleathers shoes were cheaper and better.

Customer service is of prime importance Customer service is always very important at Sree leathers stores. Satya offers his customers tea, coffee or coke at his stores so that they would sit, spend some time and download more than they had originally come to download.

Satya told me the story of a woman who was standing outside his store one day waiting for a sari shop across the street to open. His salesman invited her in and asked her to sit and wait in the store. She came in and sat down in the comfortably air-conditioned store. The salesman offered her coffee.

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She had some. She started to look at the different shoes displayed in the store. Without anyone trying to sell her anything, she ended up downloading 12 pairs of shoes. We dont just sell shoes. We make our customers feel good. Thats what brings them back, says Satya Brata Dey. One day a man was in a hurry to catch a train to Raipur. He came to the store bought his shoes and rushed to the train station. But soon he came back and bought four more pairs.

He continues to come back to the store every time he is in Calcuta and is one of Satyas best customers. Cut out the middleman Since Satya manufactures his own shoes there are no middlemen to pay. He can afford to sell his shoes at a lower price than Bata and other large companies who have huge overheads. If he has to import something from abroad such as material for soles, which he gets from the UK, he imports it directly from the manufacturer there.

Thus once again he avoids paying the middlemen. He keeps his employees happy and motivated Satya firmly believes that motivating the staff and keeping them happy is critical for the success of any business.

A disgruntled or unhappy employee will not provide good customer service. And customer service is what keeps people coming back and that is what makes the business successful. How do you motivate your staff? I asked I have staff who have been with me right from the very beginning.

I treat them like family. I keep them in good humour. I spend time talking with them and help solve their problems. My staff members dont feel like employees. They feel like they are the owners. Satya has a small team of dedicated managers who work long hours, sometimes as much as from 6 a. He loses his temper if his vendors and suppliers are not paid on time. Sources of stress Some of Satyas biggest sources of stress are government authorities. The small bureaucrats and government employees harass for no reason whatsoever, he says.

To illustrate his point he told me the following story. Satya was getting a new showroom constructed. He had taken permission from the Calcutta Municipal Corporation and everything was legal and above board. The construction started and then one day out of the blue, some policemen arrived and ordered the work to be stopped. They demanded a huge bribe. Satyas manager negotiated and settled for a lower sum.

But when Satya came to know of it he was furious and refused to pay a single paisa. He said he wasnt going to bribe. He contacted some higher authorities in the police department and the government and the policemen left. The work continued. Then one day a couple of the Calcutta municipal corporation employees arrived. They started finding faults with the construction. Now they wanted a bribe. Once again he had to approach the higher authorities to solve the problem. These kinds of harassment and hassles cause unnecessary delays and make doing business stressful.

Growing, growing ,franchising Sree leathers has about 15 outlets in Eastern India. He has only one showroom of his own; the rest are all franchises. There is such a great demand for his franchises that people come with recommendations from the Prime Minister and the Finance Minister. Some people come with briefcases full of money requesting a franchise.

But Satya Brata is very choosy about giving franchises because the quality and his hard won reputation are very important to him. But in these countries they are sold as non-brand name shoes. Satya has reached a point in life when expansion has taken on a new meaning and purpose. Expansion for its own sake doesnt mean much to him. He makes enough money and expansion would only mean more stress for him. But creating jobs is important to him.

West Bengal doesnt have many industries and jobs are scarce. He feels that it would be selfish of him not to expand. He wants to create as many jobs as he can. He believes that creating jobs is the best service he can do for the society.

He employs about people in his factory and outlets and in addition, if each of his fifteen franchises employs about ten people, then Satya has created employment for at least people. Its a win-win situation. Sree leathers is worth several crores today. The young man who came to Calcutta with only the clothes on his back and a fistful of money has come a long way. His secret? Hard work, dignity of labour and big dreams. Partnership form of organisation has developed due to the inherent limitations of sole proprietorship i.

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