If the world economy is an engine, business ventures are its fuel. If newly developed and established business firms in the industry are capable of generating business more efficiently, then business industry around the world of business will be more successful. The economy in India is transforming and the most critical question which arises in such transforming economy is-are newly formed companies and business ventures ready to embrace such transformation on a continuous basis? Right kind of materials, machinery and manpower are very critical for the overall success of any newly formed manufacturing based business organizations.
For an emerging business venture with a small scale manufacturing unit, material procurement and planning are very critical to their success in a short and long run. Efficient management of inventory can lead to management cash flow for the small business. Otherwise, the considerable amount of working capital of your company can get locked up, if too much is order too soon. Non-availability of materials for manufacturing of your product may result in production hold-up on the other hand. Also, it may result in idle manpower and machinery. So, it is recommended to carry out systematic planning for essential raw materials whose lead-time is large.
Ordering, leasing, financing and choosing of right kind of machinery that meets your production needs are also of paramount significance for your company to be successful. An extensive techno-economic survey of equipment and machinery that is available on the market and fits your production needs must be carried out by you, before investing in the purchase of machinery. Prior to making the selection of machinery and equipment, for an MSME business, the entrepreneur must also consult financial/business consultants from financial service providing companies, who hold expertise in adverting on such matters.
Manpower plays a crucial role for a manufacturing based business domains that are recently founded. Most of the entrepreneurs neglect the importance of manpower while building strategies for their business model. To make your business model successful in both short and long run, it is recommended that you should make proper projections for staffing and manpower in the project report while building a business model. Moreover, it is very important to time the induction of human resource and manpower in a very systematic and planned manner. Before the installation of equipment and procurement of raw materials, the engineers, support staff, managers, semi-skilled workers and operatives must be available. So, it is recommended that you should invest a lot of resource and time in development proper planning for recruitment of kind type of manpower and human resource.
Only out-of-box thinking and practices can attract the best talent to newly formed business organizations as they cannot complete with the big organization on compensation package only. Companies have to look innovative and creative ways to motivate and attract new talents if they want to compete and survive with well-established organizations. Funding for small business in India is no longer a big challenge as many banking and non-banking organizations offers business loans at low rate of interest and long repayment period with or without collateral; and it is a proven truth. Nowadays, the biggest challenges faced by emerging and newly established companies are to purchase right kind of machinery, attract the best talent & retain it and procurement of right kind of raw materials at right time.