What Are the Steps to Set Up Small Scale Industry

Small scale industries have a large contribution in the growth of an economy. If we take example of India, the fastest growing economy in the world, the small scale ventures have gained a huge success quotient. Not only these enterprises produce export quality goods, they have also created thousands of job opportunities as well.

Another advantage of small scale enterprises is that they are easy to set up and can fulfill one’s dream to become an entrepreneur. However, there are some important steps that you must follow to set up a small scale industrial unit. Learn about them from the following discussion.

First of all, you need to prepare the description for the small scale industry you want to set up. You have to decide whether you wish to have a corporation, proprietorship or partnership. Next, you need to describe the product you wish to manufacture or the service you wish to offer. While choosing the product or service you want to offer, you must conduct a good market research and learn about the prevailing competition in the market.

The next step is to choose a location to set up your small scale industry. Make sure you consider things like availability of raw materials, labor, transportation services and other such things while choosing the location. The next big step is to arrange for finance. If you don’t have enough finance, the best way is to borrow a loan. You may learn about financial aid offered by the government of your state or country. However, you must simultaneously plan on how you would repay the loan in future.

Production management is the next step, once you are able to start your small scale industry. This includes allocating space for different operations and choosing your production methods. Make sure that you follow the practices for quality testing and keep on improving. You have to purchase required machinery and hire employees and workers for different departments.

Marketing and business advertising form the next big step of setting up a small scale industry. Online business directories and various traditional forms of advertising can be used to gain exposure for your business. You have to decide prices for your products or services, keeping in mind the profit margin.

Planning in advance is a useful aspect of setting up a small scale venture. Keep on assessing and improving your plan at every stage. All these steps are the integral parts of the process to start up a small scale unit.