Choice of Services

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The next step in setting up a business after making a business plan is to choose the kind of product / service an entrepreneur would like to manufacture or provide. This is a very crucial decision and involves lot of intensive research and study of the industry, the market, competitors etc.

An individual / entrepreneur must analyze and research the following in detail before actually deciding the product or service he plans to manufacture or provide respectively:

• Understanding the industry and its functioning
• Assessment of the infrastructure and resources required in manufacturing the product / service
• Assessment of size and structure of the product market
• Assessment of the major manufacturing regions
• Assessment of the extent of competition and major players
• Assessment of the industry trends and regulations
• Assessment of the future of the product market
• Understanding the government policies related to the industry

There are certain governmental agencies that help entrepreneurs select the right kind of product and also provide them with vital industrial information. The directorate of industries set up in different states also provide guidance and advice to individuals.

Every industry has certain agencies / organizations that monitor, research, analyze, product demand, market development etc.

These agencies provide vital information including industry specific:

• Project profiles
• Feasibility study
• Industry study
• Area development study

A person must also keep in mind the following while choosing the product:

• Availability of raw materials
• Availability of process technology
• Support and incentive schemes offered by government
• Complete market information and trends
• Packaging, branding and after sales service