Demand for coffee in the country has been growing very fast. Traditionally only South Indian States were considered as the market for coffee. In recent years coffee has acquired a national presence and demand for coffee is growing much faster in the non-south regions. Between 2003 and 2009 the coffee consumption has grown in the non-south regions @42% annually while it has grown by 3,5% p.a in the southern states. There are exciting business opportunities for coffee processing units especially in non-southern states.

Coffee Board provides 25% subsidy with a ceiling of Rs 25 Lakhs per unit to individuals and firms and 40% subsidy with a ceiling of Rs 40 Lakhs per unit to the self help groups and growers collectives or co operatives-on the total cost of the equipment.

The eligible items for support are Roasting, Grinding and Packaging machineries all together or either Roasting or Grinding machinery along with Packaging machinery.
Existing units can also avail this benefit for addition of any of the components.
Eligible Capacities of Machinery Roaster of 10kg per batch or more capacity. Commercial grinder of 15kg or more per hour capacity Packaging Machines (pedal sealing, continuous sealing, filling and Sealing form fill and sealing automatic or semi automatic Nitrogen flushing and sealing machine, amniotic and semiautomatic Vaccumissing sealing machine) are eligible for subsidy under the scheme.

Please obtain complete details of the scheme and the detailed conditions of eligibility, application procedure etc by accessing ‘Support for Coffee Processing’ from Coffee Board website www.indiacoffee.org.

• Referrals - this is the simplest and most powerful medium of getting new business. Ask your existing customers to refer you to their friends. Some will do it on their own, proactively, while some others will refer you only when asked by someone else. Both types of referrals are extremely valuable since more than half your job is already done by the referer. Trust, which is a vital part of any sale,  is already built and you just need to agree on the commercial terms. You may like to reward your existing customers for a successful referral, to encourage them to refer more, or you may just like to send in a thank-you note. Remember to acknowledge and thank the referer always.

• Social Media - Use the Social Media effectively to widen your reach. When using Social Media, be careful not to publicize your product or service aggressively. Promote yourself by being an expert on the subject and offering to help. The more your family and friends perceive you to be an expert in your chosen field, the more likely they are going to do business with you. Use Facebook, LinkedIn and your own personalised blogs to spread the word. Use these media intelligently, to drive the traffic to your own website.

• Visibility -  Here again, the idea is to promote yourself as an expert. Join a Chamber of Commerce or a Trade Association or a Networking Group and participate actively in its activities. Speak on the topics of your interest e.g. if you are in the Plastics Field, you can join a Plastic Manufacturers Association and give lectures, submit papers and lobby for the industry, which will get you quoted in Trade and General newspapers and magazines. Write articles in Magazines and Newspapers. The more you are known as a Plastics expert, the more people will turn to you for business.

• Retain Customers - It is much more difficult and costly to get new customers as against retaining your existing customers. Pamper them, handle them with care and give them a bit more than their money’s worth. Implement a good Customer Relationship Management (CRM) system to follow up on leads, service and outstandings. Wish them on special occasions. Do all that you do for your family and they will be a part of your family and will stay with you for life.

• Mailing Lists - Use mailing lists sensibly. Send mailers to your customers, friends, prospects and relatives. Pass on information selectively about the trends in your industry, new developments, etc. Use the 80-20 rule – Talk about your industry 80% and your own brand 20%. Mailers should not be too frequent and boring to be deleted on the spot, nor too far apart for the receiver to lose interest. Mailers should be made so interesting and valuable that the addressees should be looking forward to receiving the next one !

• Advertising ? Advertising is one of the most costly and least remunerative methods of promoting yourself. In current times, owing to media clutter, the reader involuntarily switches his mind off the ads and relies more on recommendations and referrals. However, if you need to cast the net wide and your target audience is well identified with a particular medium, you may just want to try it out.

• Be Ready - Above all, be ready with a brief overview of your business and its need. In a social meeting with friends or unknown people, if someone asks  you – “What do you do and how can I help you ?” you should be ready with a 60 second pitch about yourself, your product / service, your immediate past achievements and your current needs. Keep practicing this pitch over and over – it should not sound rushed (don’t try and pack 5 minutes of info in 60 seconds ! ), but should be clear and concise.

 A sponsorship by Canaan Partners to a business programme at Cambridge
A coveted mentorship from The Indus Entrepreneurs (TiE)
A Lufthansa Business Class return ticket to a destination of your choice in Europe 

In the extremely successful Season 2, ten entrepreneurs like you were selected as ‘pioneers of tomorrow’ and received the invaluable benefit of a TiE mentorship as well as a free Business Class ticket.

You could be next.

Click Here to Register Now

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27th and 28th January, 2012 @ ISB

Bringing policy-makers, practitioners & researchers with interest in SEZs & trade onto a common platform. The discussions will focus on strengthening the linkages between SMEs and SEZs. A perfect launch pad to connect and lookout for new opportunities.For more information click here

The single biggest hurdle that entrepreneurs confront when they consider launching a new business is not knowing if their business idea is truly a good idea. Can they support themselves and their family? What are the chances of success – or failure ? Most people are not accountants, and struggle with understanding the principles behind financial forecasting. In such situations, the major mistake to be avoided is to assume that you will be successful and will somehow get through !  A sound business plan is one of the keys to success.

A sound Business Plan is always useful for self evaluation of your business. It may give you a yes / no signal, before you actually plunge in. It would highlight the pros and cons of your business and help you keep a watch on  your weaknesses. Besides, if you are looking for a partner or a financier, it is a good document to keep handy at all times.

One must keep in mind the following components of a good business plan :

• Executive  summary : This would be a quick summary of what you intend to do and how. What is your main business mission and what needs does it set out to fulfil ? It should give the reader a quick overview of your business model, the key financials, the marketing strategies, technology required, if applicable, etc. Ideally it should never exceed 2-3 pages. It should be lucidly written and should excite the reader and lead him on to read the full plan.
• Business description : This section of your business plan should describe in detail, all aspects of your business model. What are the revenue generators, the operations, the costs, the technology, the infrastructure, finance and admin requirements. This is the core component of your Business Plan.
• Market Analysis : Use this section to dissect the market and analyse it in depth. Know your industry’s average financial performance statistics. Make your market forecasts plausible and relevant to the current situation. A detailed review of the competition, what they are upto and how they are pricing similar products would help tremendously. Touch upon your USP (Unique Selling Proposition) and product differentiation so that you stand out from the crowd, and use this to generate better prices for your product or service.
• Financial Projections : Identify the selling price of your product / service in the market, know your costs, find out exactly how much you will pay to source or manufacture your product. Also, there would be several fixed costs which you will have to incur to run your business. List out such costs and how you intend to track and control them – this might be the key to your success in some cases. Your financial projections should also include your initial investments in fixed assets and infrastructure and how you would most likely finance the same. Whether you would take loans or take equity from a financial partner, if you would take loans, whether they would be secure or unsecure, at what cost would the loans be available, etc.
• Human Resources : What kind of people would you require to succeed ? Would you need partners ? Senior Executives ? Mentors ? WorkersHow many and when ? How much would they cost ?
• Scalability : What if you succeed and reach your peak as projected in the first 3 years ? Is your plan scalable ? What would it take to move up the ladder ? Additional resources ? Space ? People ?
• Plan B: What if your main plan fails – would  there be a fall back ? Would you continue to operate at a reduced level ? Would you outsource before you consider manufacturing again ? What are the costs of aborting the venture? Think about all this and document it in your business plan.

Remember, a business plan is not cast in stone. You should review it annually and change it according to the realities you face, to make it more effective and relevant. Also, it should be relatively confidential – it should not be available to all and sundry.

There are books and websites galore on the subject and you will have to wade  your way through, to get the right one. You may look up http://wzcc.net/bpc09_resources.asp or www.enterprisers.in for a variety of resources to make business plans, to start with.

So before you take the plunge, be sure to make a sound business plan. Remember – not planning to succeed is a sure plan for failure !

E-Series – Yazdi Tantra