How to evaluate business idea?

Posted by on Apr 1, 2011 in Business, EPM World, Self-employment, Start-up business | 0 comments

Entrepreneurship is evolved owing to several reasons which could be:

  1. Ambition to make big, to earn big, to prove big
  2. Individual experience and expertise in a given area
  3. Investment opportunity
  4. Campus driven
  5. Inspiration by a colleague or a friend to join him / her
  6. Trying situation – Job lose owing to any of several reasons
  7. Family tradition
  8. Any abrupt event that lead to self-employment

However, the very first and the most difficult stage in the journey of entrepreneurship is freezing the very business opportunity for the proposed venture.  The opportunity could be related to service sector, product manufacturing or so.  The generally accepted approach and the best practice at this juncture is going for ‘market research’ on the opportunity, unless the business offering in question is not a job work for some other business.  Considering that the market research recommends the business opportunity, you may go ahead with further positioning in just 2 steps.  Each step, however, is very comprehensive and process oriented.  I have drawn the whole approach into one page document placed below as an image.

Click on the image for a larger view:

How to freeze a business opportunity

The item ‘A’ in the picture presents you two opportunity areas i.e. Product and Service.  The next item ‘B’ contains important parameters to be determined for the product or service offering.  This is the stage where you actually understand what exactly your business is.  This clarity is indispensable in letter and spirit for every further move in your stride.  Considering that you are ready with the plan and process related to item ‘B’, you will move to item ‘C’ which tells you the next plan of action to market your product and conduct your business.  The item ‘D’ is the value what you achieve and the return you gain out of your business investment.

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Prime Minister Employment Generation Program

Posted by on Jan 7, 2011 in EPM World, Government Schemes | 34 comments

The following are the details of financial assistance available under PMEGP.

Industry Eligible loan Promoters equity Subsidy Loan given by Security
Manufacturing INR 25.00 lakhs General Category:

10%

Special (including SC / ST /
OBC /Minorities/Women, Exservicemen,
Physically
handicapped, NER, Hill and
Border areas etc:

5%

General Category

Urban : 15%

Rural: 25%

Special (including SC / ST /
OBC /Minorities/Women, Exservicemen,
Physically
handicapped, NER, Hill and
Border areas etc.

Urban : 25%

Rural: 35%

Any Public Sector Bank or Private Scheduled Bank at their discretion based on the project viability. Nil up to INR 5.00 lakhs

Covered under CGF above INR 5.00 lakh and up to INR 1.00 crore.

Under CGF no security required up to INR 1.00 crore.

Banks at time might demand depending upon the merits and demerits of the project.

Service INR 10.00 lakhs

Required enclosures along with application:

  1. Project report of the activity
  2. Attested copy of OBC / ST / Minority / PHC / Ex-servicemen certificate.
  3. Attested copy of the educational qualification, experience, training certificate if any.
  4. Attested copy of EDP training [for a minimum period of 2 weeks] certificate, if any.
  5. Affidavit in bond paper costing Rs. 15/-
  6. Consent letter from Bank, if available.
  7. No objection from Gram Panchayat, if applicable

The procedure:

  • All the loan applications received under PMEGP scheme will be  placed before the District Level Task Force Committee [DTFC] under the Chairmanship of the Deputy Commissioner of the concerned District from time to time.
  • The DTFC is conducts personal interview of the applicants and recommends the deserving cases on the basis of the viability of the project to the concerned banks.
  • The recommended cases will be sponsored to the concerned banks for consideration of finance under the captioned scheme.
  • The bank will sanction 90% of the project cost in case of General category and 95% of the project cost in case of Special category of beneficiary / institution and recommend their cases to the KVIB for arranging 2 weeks duration compulsory EDP training.
  • KVIB will arrange EDP training. Once the beneficiary undergone EDP training, the bank will disburse full amount suitably for setting up of project.
  • Once the 1st installment of bank finance is released, the bank will submit margin money claim in the prescribed proforma [which is 25% of the project cost in case of General category and 35% of the project cost in case of Special category] to the designated Nodal Banks.
  • Once the margin money is released in favor of the loanee, it should be kept in the term deposit receipt of 3 years at branch level in the name of the beneficiary / institution. During this period, no interest will be paid on the TDR and no interest will be charged on loan to the corresponding amount of the TDR.
  • The margin money component [back ended subsidy] will be credited to the borrowers loan account after 3 years on the basis of 100% Physical Verification Report of the said unit.
  • 100% Physical Verification of the actual establishment and working status of the units, setup under PMEGP will be done by KVIC.

May also check for Credit Guarantee Fund scheme details in the other posting.

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