Do You Want to be an Entrepreneur ?

You need an Idea

• Don’t have an idea– The be a Franchise or a Dealer for a company

You need to ask these questions in you

• Do you have the confidence ?• Do you have money to start a business?• Do you have the knowledge?

Don’t have confidence

• You cannot be an entrepreneur • Join some company as an employee to gain

some experience and knowledge

Don’t have money

• Approach banks for loan or Venture capitalists• Prepare a project report with the working of

how you will be able to return the loan and feasibility analysis

• Along with the report submit NOC and approval from the head of the region and various departments relating to your project.

• After submitting the above your proposal will be processed further .

Don’t have knowledge

• Gain knowledge by interacting with Entrepreneur’s in yours specific field of interest

You have got all the above

• What type of organization– Proprietorship: One owner, Free to make all

decisions ,Need not be registered under organization act.

– Partnership: Min 2 –Max 10 for trading , Min 2 –Max 20 for Financial , Registered under organization act.

– Private limited: Min 2- Max 50, controlled by Indian companies act and organisation act.

– Public limited: Min 50 – Any number

Considering that you start a Proprietorship

• What Industry are you going to start?– A manufacturing company– A service provider– A trading organisation

For starting a trading company(Dealership)

• Approach the company which has called for dealerships

• Fulfill their basic requirements such as working capital ,infrastructure ,bank guarantee , manpower, location etc.

• Receive an LOI(Letter Of Indend) ,this is an appointment and an agreement between you and that company under some conditions for a period of 2 to 3 years

Registration

• Purchase land for where house ,showroom. based on the region of operation.

• Land to be registered under registration act.• Construction to be done on the basis of town

plan.

Laws that apply to trading

• Sales tax registration , TIN(Tax Identification Number) number to be used to do transactions, service tax.

• C Forms should be used buy goods from other states

• With more than 20 employees in your organisation, you have to pay ESI(Employee State Insurance),PF(Provident Fund)

Laws

• Professional tax to the municipality • Labor laws have to be followed strictly– Shop and establishment act– Factories act– Minimum wages act ,minimum Rs 4250(inclusive

of PF & ESI)– Bonus act ,payment of wages act– Child labor act

Traders ethics

• Maintain a high level of credit worthiness• Maintain network with the suppliers • Maintain a database of the customers • Maintain stock at least for 5 days• Motivate the employees to increase your

profits• Systems to be implemented so that work is

done even in your absence

Thus you become an entrepreneur