I am an entrepreneur, owning a textile unit in Maharashtra. I started the business in 2000. During the last 14 years, the cost of doing business has increased substantially. I have the capital for promoting and growing my business, but getting the skilled manpower is the problem. I am failing to meet my production requirements and thus making huge losses. Please suggest, how can I solve the issue of not getting skilled manpower?
The problem, it seems, is not the growing costs of the business as you have the capital to back it, but is of not getting skilled manpower. A National Skill Development Corporation report suggests a manpower requirement of 61.6 million by 2022, which is huge. The first question will be – are you paying them well? To start with, rework your economics and determine the minimum salary that the manpower expects. Second, do your employees feel that the unit’s work environment is not relatively good? Once you have managed to take care of these aspects at your end, then much of the problem can be handled internally. Externally, you can get skilled manpower after researching on the companies who are into outsourcing skilled manpower for your industry. These companies can help to bridge the gap.
I have over 15 years of experience in the IT field and now I am planning to start my own business. My business plan is ready. The only thing I am looking for is to get the funding. What will be the best source of funding according to you?
Securing funds is a challenging proposition for aspiring entrepreneurs. You can start with bootstrapping. You can use your personal assets and savings if you think your business plan deserves it, or you can have your family and close friends help you by winning their confidence. Once you have your business running, generate turnover by bartering with other ancillary businesses that go well with your field. The best source of funding is your own money. Investment from external sources can happen when your anticipated model is ready with a growth strategy.
Working in this mode will force you to be more customer-focused since all of your money will come from them only. But bear in mind that you have to solve cash problem before it starts impacting your operations. Best of luck to you!
I have just finished my college in Hotel Management. I want to be into restaurant business. Should I take the franchising route for opening my restaurant? Please guide me.
The location, though extremely important, is never first in the order of things to be pondered on while planning to start a restaurant; it is the concept that decides what location will do justice to it. Coming to the second part of your question, the issue related to the franchise model is that you may not be able to give your creative urges full sway, yet it is an excellent opportunity for aspirants today to gain good returns with less risk. Review your choices, speak to the brand owners and understand different options in the food and service segment before taking any of them. While starting from the scratch on your own gives you complete freedom to choose your own concept, theme and designing, doing everything yourself is a challenge. On the other hand, taking up a restaurant franchise will give you initial handholding, instant recognition, training and marketing guidance.
As a franchise holder, you will have the advantage of having a recognised brand, food concept and menu, and that help in acquiring quality raw material. While the local sales will be your responsibility, the franchisor will invest in the overall marketing and brand building. You will also get help in getting the paperwork done and team hiring.
What factors I should consider before choosing a location. I am going to open up a restaurant in Ludhiana. But people are making me apprehensive about the location I have in mind.
You will notice some of the restaurants making huge profits only because they are located in areas with good accessibility. Being accessible to your potential customers ensures high footfalls. Having said, you need to remember that it is more likely for customers to visit QSRs and Cafes on an impulse. If you are opening a fine dine, make people to come to you, and if you are going with a QSR format, go where the people already are.
Moreover, you can run a survey about the restaurants operating in the same location. Spare a moment to think about your points of difference. And also find out the other businesses that can complement your business. Remember, businesses such as theatre, entertainment and shopping go hand-in-hand with restaurants.
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